The Road to a Sustainable Future
SMRT Corporation Ltd Sustainability Report 2016 SMRT Corporation Ltd (SMRT) is Singapore’s About this Report premier multi-modal land transport provider. Our core businesses are in rail operations, maintenance SMRT’s inaugural Sustainability Report 2016 provides an overview of our approach, priorities and progress in the and engineering as well as in bus, taxi and area of sustainability for the Financial Year 2016 (1 April automotive services. 2015 to 31 March 2016). Sustainability is integral to our business and as we embark on this journey of sustainability reporting, we also hope to identify and focus on areas Complementing these are our integrated of improvement. We intend to produce this report on an businesses in retail, media and marketing, as annual basis. well as properties and retail management. We With the environment as a key consideration, we have are committed to sustainable development and made a conscious decision to not produce physical copies corporate social responsibility. of this report. It is available on our corporate website.
Scope SMRT was established in 1987 and was listed on the The Sustainability Report 2016 addresses our practices, Singapore Exchange in July 2000. As of 31 March initiatives and impact in Singapore. While we have business 2016, our market capitalisation stood at around interests overseas, the information and data provided in this report relates mainly to our local operations, where $2.3 billion. we are headquartered. Financial statements of our businesses can be found in our Annual Report 2016.
As the construction of facilities and infrastructure are under the administration of the authorities, it is not within the scope of this report.
Guidelines SMRT’s Sustainability Report 2016 adopts the reporting framework set out under the Global Reporting Initiatives (GRI) G4 Guidelines. We have prepared this report to meet the GRI G4 – ‘Core’ level as well as the Sustainability Reporting Framework of the International Association of Public Transport (UITP, from the French: l’Union Internationale des Transports Publics). Drawing on these two sets of guidelines, we have been able to produce Contents a balanced report, focusing on our key material issues. The GRI Content Index can be found on page 46. 3 Business Overview 7 Milestones Assurance 9 President and Group CEO’s Message Our Sustainability Report 2016 has not been externally assured. We aim to seek assurance in the future. 11 Our Strategy 13 Performance Summary Feedback 16 Our Approach to Sustainability We welcome feedback from our stakeholders on this report or our sustainability journey at [email protected]. 20 Our Corporate Governance and Ethics 22 Our Health and Safety 25 Our Environment 32 Our Customers 37 Our People 41 Our Community 45 Our Sustainable Procurement G4-3 ∕ G4-4 ∕ G4-5 ∕ G4-7 ∕ G4-8 ∕ G4-17 ∕ G4-28 ∕ G4-29 ∕ 46 GRI Content Index G4-30 ∕ G4-31 ∕ G4-32 ∕ G4-33
Visit our corporate website for more information at www.smrt.com.sg Join us on SMRTCorpSG @SMRT_Singapore SMRT SMRT Corporation Ltd
1 SMRT Corporation Ltd – Sustainability Report 2016 Our Vision Our Mission Our Core Values Moving People, To be the people’s choice Service Excellence, Enhancing Lives by delivering a world-class Mastery, Responsibility transport service and lifestyle and Respect, Teamwork, experience that is safe, reliable Nurture and Integrity. and customer-centric.
SMRT Corporation Ltd – Sustainability Report 2016 2 Business Overview
Rail Operations Rail • Dominant rail operator in Singapore. • Operates and maintains the Bukit Panjang Light • Operates and maintains the North-South and Rail Transit (BPLRT) system, comprising 7.8km of East‑West Lines (NSEWL) and the Circle Line elevated guideways across 14 stations. (CCL) with a total route length of 129.8km across • Average daily ridership of about 2 million 84 stations. passenger trips.
Revenue ($m) FY2016 681.0
FY2015 654.0
Operating Profit ($m) FY2016 7.4
FY2015 9.6 G4-4 ∕ G4-6 ∕ G4-8 ∕ G4-9
The Right Balance Rail and Non-Rail Operations
Non-Rail Operations Buses Taxis Other Services • Manages a fleet of over 1,400 buses, providing 106 bus • Third largest taxi operator in Singapore with over Automotive Services Bus-Plus Services services connecting the Western and North-Western 20 years of experience in taxi operations. • Market leader in corporate fleet maintenance. • Premium private bus service operator with a areas with the rest of Singapore. • Manages a fleet of more than 3,500 taxis. • Engineering arm of SMRT Roads, providing fleet of about 80 buses including mini-buses and • Average daily ridership of about 1 million passenger trips. • Launched Strides Transportation to provide repairs and maintenance services for 12-metre buses. chauffeured and limousine services and car rental. approximately 5,000 SMRT vehicles and 2,000 • Provides 45 bus services to corporate clients corporate and private vehicles. such as Singapore General Hospital and • Authorised workshop for accident repair for Nanyang Polytechnic. several insurance companies. • Offers premium bus services that connect Revenue ($m) Revenue ($m) passengers between residential areas and the Central Business District during the morning FY2016 248.5 FY2016 147.9 and evening peak hours on weekdays. FY2015 238.1 FY2015 142.9
Revenue ($m) Operating Profit ($m) Operating Profit ($m) FY2016 33.4 FY2016 5.9 FY2016 17.0 FY2015 28.7 FY2015 (6.5) FY2015 13.7
Operating Profit ($m) FY2016 4.3
FY2015 2.4
3 SMRT Corporation Ltd – Sustainability Report 2016 SMRT Corporation Ltd – Sustainability Report 2016 4 Business Overview continued
Rail Operations Rail Transit-Oriented Rental & Advertising • Rental network occupancy of 98%. • Optimised short-term lease space for higher rental yield. • Brought smiles to commuters with popular Disney franchises and movies on advertising and retail spaces. • Celebrated SG50 through engaging advertisements. Overview
Revenue ($m) Operating Profit ($m) FY2016 174.6 FY2016 106.1
FY2015 156.6 FY2015 101.5
Note: Revenue and Operating Profit figures comprise Rail and Non-Rail Transit-Oriented Rental & Advertising and Commercial Business
Non-Rail Operations Other Commercial Business Engineering Services Properties & Retail Media & Marketing Singapore Rail Engineering SMRT Services Transit- + Management • Launched WINK , first‑of‑its‑kind loyalty • Rail engineering solutions provider to mass • Provides transport‑related technical services Oriented • Leased more than 90% of space at app for retailers, out‑of‑home and transit operators locally and internationally. and support capabilities both locally and Singapore Sports Hub. digital advertisers to integrate their • Joint ventures with Toshiba to market and overseas. offline and online campaigns with supply energy‑efficient propulsion systems to • Joint venture with 2 Getthere Holding B.V. to Rental & real‑time return on investment tracking mass transit operators globally (excluding market, install, operate and maintain their and analytics. Japan), and with Faiveley Transport to Automated Vehicle systems in Singapore and Advertising Partnerships provide Maintenance, Repairs and Overhaul the Asia-Pacific region. • Manages retail and advertising • Enhanced consumer lifestyle offerings (MRO) services for rolling stock components SMRT International spaces within the network of bus and rewards through partnerships with in South East Asia (excluding Thailand). • Provides operations and maintenance, interchanges, buses and taxis. Citibank, Football Association of engineering consultancy and project Singapore, Maybank, The Walt Disney management services overseas. Company (Southeast Asia) and Revenue ($m) Warner Bros. FY2016 11.3
FY2015 15.2
Operating Profit ($m) FY2016 (0.03)
FY2015 (2.4)
5 SMRT Corporation Ltd – Sustainability Report 2016 SMRT Corporation Ltd – Sustainability Report 2016 6 Milestones
SMRT introduces new Bus Captain The SMRT Trains Engineering Progressive Career Scheme. Programme is launched
PEOPLE to develop a sustainable pipeline of engineering professionals. Woodlands MRT station is the first MRT station in Singapore to be awarded the Official opening of Singapore Bus Building and Construction Authority’s SMRT establishes an Environmental Training and Evaluation Centre, Green Mark (Gold). Sustainability Committee to oversee Singapore’s first our green sustainability efforts. team‑based simulation.
ENVIRONMENTSMRT PEOPLE introduces 600 Prius Hybrid taxis, The Road to a SMRT equips two trains with the the largest hybrid fleet in Singapore. SMRT – Temasek Cares AED
ENVIRONMENT Permanent Magnet Synchronous on Wheels is launched, a three-year Woodlands Xchange opens and tenants Motor-based propulsion systems pilot programme where 100 SMRT are first shop owners in Singapore to be Sustainable Future which can achieve energy savings taxis have Automated External certified with the Project: Eco-Shop label, of close to 40%. COMMUNITY Defibrillators (AEDs) installed in which was jointly developed by SMRT and their vehicles. Sustainability has been a part of our business since we began the Singapore Environment Council. SMRT collaborates with Pathlight School operations in 1987. to support inclusiveness and celebrate SMRT supports Wheels@Ubin, SMRT adds 30 new wheelchair-enabled abilities of people with special needs by a community project which brought London cabs to its fleet. unveiling 50 commissioned works of art 100 wheelchair users on a tour
COMMUNITY featuring transport themes drawn to Pulau Ubin to celebrate SG50. by Pathlight students and alumni. CUSTOMERS SMRT celebrates the official opening of the Bishan-Ang Mo Kio Inclusive Playground which has special needs‑friendly play features to encourage inclusive play.
2013 2015
1987 1999 2001 2008 2009 2014 2016
Singapore Mass Rapid Bukit Panjang Light Rail In collaboration with the SMRT launches Gift Establishes SMRT introduces Adopt-A-Station/Adopt‑An‑Interchange, Sponsored by SMRT, Transit (SMRT) is Transit, Singapore’s first Ministry of Education, of Mobility Programme SMRT Institute, an a community outreach programme that partners local the JurongHealth
incorporated. light rail system, opens for SMRT launches Learning to provide taxi services PEOPLE accredited educational schools to encourage gracious commuting behaviour. Mobility Park is the passenger service. Journey, a structured for needy individuals institution that develops first-of-its-kind in Singapore
CUSTOMERS Singapore’s first MRT CUSTOMERS COMMUNITY COMMUNITY COMMUNITY education programme COMMUNITY with physical disabilities. and delivers transport to feature life‑size public System begins operations to provide students with related training and transportation models to with inaugural service insights into SMRT’s ‘SMRT is Green’ is education services. SMRT introduces a new progressive competency‑based help patients rehabilitate. between Yio Chu Kang operations. launched organisation‑wide career scheme for our rail employees. and Toa Payoh on the as a commitment Singapore’s fourth rail line, PEOPLE Seven SMRT engineers are North-South Line. SMRT Corporation and to environmental Circle Line, commences SMRT signs Memorandum of Understanding with e2i and accredited as Singapore’s NTWU to jointly develop and operate the first Bus Career
TIBS Holdings merger sustainability, which service from Bartley PEOPLE first Chartered Engineers in creates Singapore’s first ENVIRONMENT includes initiatives to to Marymount. Development Centre. Railway and Transportation CUSTOMERS multi-modal transport green our fleet. Singapore Rail Engineering Pte Ltd is Engineering.
CUSTOMERS Wheelchair Accessible Bus company. SMRT puts South services are introduced incorporated. Together with Toshiba, it 2getthere Asia, a joint East Asia’s first Euro to provide commuters establishes a joint venture, Railise, to market venture between SMRT V-compliant bus on with greater access. and supply energy-efficient Permanent Services and 2 Getthere, the roads. Magnet Synchronous Motor-based is set up to market, install, ENVIRONMENT
propulsion systems globally. CUSTOMERS SMRT debuts SMRT operate and maintain the ENVIRONMENT Eco taxis which use SMRT appoints energy managers in accordance with the Automated Vehicle systems compressed natural gas. Energy Conservation Act to report on energy consumption for customers in Singapore as well as greenhouse gas emissions. and the Asia-Pacific region.
SMRT progressively installs buses with Telematics Solutions towards Saving Fuel and Safety Driving to encourage safe and eco‑driving. ENVIRONMENT HEALTH AND SAFETY HEALTH
7 SMRT Corporation Ltd – Sustainability Report 2016 SMRT Corporation Ltd – Sustainability Report 2016 8 President and Group CEO’s Message
level, seven SMRT staff became Singapore’s pioneer batch of decisions such as the purchase of Prius Hybrid taxis and Chartered Engineers in Railway and Transportation Engineering, energy-efficient Permanent Magnet Synchronous Motor‑based an accreditation awarded by The Institution of Engineers, propulsion systems in our trains. Our trains also feature Singapore and recognised by the railway industry as an indication regenerative characteristics, as when a train applies its brakes, of the deep expertise in a specialised field of engineering. power is returned to the system via the Third Rail. SMRT’s We also continued apace with our organisation-wide campaign Woodlands and Ang Mo Kio MRT stations were awarded the to inculcate service excellence and a customer-oriented culture Building Construction Authority’s Green Mark (Gold) Award in within SMRT. recognition of its sustainable design and operational practices.
We are renewing our emphasis on workforce health and safety. Adding to these initiatives, we recently reviewed our framework, Safety procedures that we have in place are for the well-being structures and processes, and established an Environmental and protection of our employees. We deeply regret that two Sustainability Committee to oversee energy, water and waste of our colleagues lost their lives in a tragic accident along the management in the organisation. The Committee will drive East-West Line this March. A comprehensive Company-wide efforts to reduce our greenhouse gas emissions as well as to review is being conducted on all our safety structures, processes monitor and implement initiatives to manage our water and waste and compliance. This is to ensure that safety continues to be consumption responsibly. By 2018, we target to reduce energy accorded the highest attention and priority in our operations and consumption by 10%, and waste and water consumption by 6%. maintenance services. A zero accident policy at the workplace is We will also continue to explore renewable energy technology, the conscious target that everyone in SMRT must work towards, such as solar energy, and will implement these as deemed as clearly we must do better. feasible from an operational and technological standpoint.
We recognise our responsibility to provide commuters Governance with a world-class transport service that is safe, reliable and customer‑centric. At the forefront of our operational It is vital that we conduct our business ethically and responsibly performance and customer experience efforts are operational through strong internal controls and by inculcating the right performance standards, key performance indicators and service values in our people. We have in place a robust Enterprise standards laid down by the authorities to be met across all our Risk Management (ERM) framework to deal with opportunities train, bus and taxi operations and services. As part of this effort, and uncertainties through timely identification of key risks and SMRT is committed to carrying out timely fleet and infrastructure implementing of appropriate mitigating measures. SMRT’s It is my pleasure to present SMRT’s first Sustainability Report. demonstrate our commitment to ensuring product quality, upgrade and renewal programmes, improving customer service materiality assessment is mapped against the risks identified This marks a new chapter in our journey towards a sustainable environmental protection, and occupational health and safety. touchpoints, and enhancing service recovery measures in the within the ERM framework. future. This report demonstrates our commitment to deliver SMRT Trains is certified to ISO 55001 (maturity level 3) for its event of a disruption. positive impact to our business lines and our stakeholders. efforts to institute a life cycle asset management system. We are As a mark of organisational excellence, our efforts in adopting a the second metro in Asia to achieve this standard. It underscores SMRT is about people. We reach out actively to the community high standard of corporate governance and transparency were SMRT’s Sustainability DNA our commitment to ensuring that assets are being appropriately we serve. In the past few years, we have identified key partners recognised when we won The Internal Audit Excellence Award maintained, with risks properly identified and addressed. and worked closely with them to realise important projects that during the Securities Investors Association (Singapore) Investors’ Since 1987, we have played a significant role towards a vision of can make a positive impact on the community. With the opening Choice Award ceremony last year. “Moving People, Enhancing Lives”. Over the years, we have been As a mark of our emphasis in sustainability, we became a pledge of the Bishan-Ang Mo Kio inclusive playground, children with pivotal in the way Singapore lives, works and plays by providing signatory to the International Association of Public Transport special needs have been able to interact and play with each Looking Ahead safe, reliable and customer-centric connectivity through our (UITP, from the French: l’Union Internationale des Transports other. As a primary donor of the inclusive playground, we are public transport services. Publics) Sustainability Charter. As a signatory, we acknowledge proud to be a part of a very positive step towards integrating We recognise the need to adapt and anticipate changes to the the importance of integrating sustainability in the way we work, children with disabilities into society. economic, environmental, social and governance sustainability At SMRT, sustainability is intrinsic to our business at both the as it drives long-term strategies and outcomes. Our participation landscape. I hope our first Sustainability Report will leave you strategic and operational levels. We have identified 14 material also means that we are part of the conversation to contribute to, On that same note, we have also been working with with a strong and positive impression of our commitment issues that are important to the Group and our stakeholders. as well as learn from, best practices among international public JurongHealth to set up Singapore’s first Mobility Park within the to sustainability. We recognise that transparency comes with reporting on such transport operators. integrated healthcare hub of Ng Teng Fong General Hospital material issues, and we are accountable for the consequences and Jurong Community Hospital. The park features a life-size We will continue to integrate sustainability as an instinct and and contributions these issues have on our businesses. Understanding Our Stakeholders train car, bus mock-ups and a taxi to replicate real-life conditions. habit across the organisation, and as an integral part of every These prepare patients for their discharge and help them regain business decision we take. We appreciate having you onboard These material issues are taken into account through our 5 As corporate citizens, we recognise that our businesses and their confidence in moving and getting around on our public with us on the journey to a more sustainable future. strategic thrusts - improving operational performance, enhancing actions have an impact on all our stakeholders. These include transport system. customer experience, strengthening workforce health, nurturing our employees and customers, as well as the larger public organisational excellence and ensuring sustainable growth. and community. Green Business We encourage everyone in our organisation to think and act with SMRT’s long-term sustainability and our responsibility to the Our people form the backbone of the organisation and are vital The public transport landscape in Singapore continues to evolve community in mind. to our collective success. Over the years, we have developed to meet the changing needs of commuters and an ageing and sustained a professional workforce. In the last financial year, population. We are committed to leveraging on technology to We are committed to ensuring optimal operational performance as part of our efforts to deepen competency, we formed key offer environmentally friendly travel options. Desmond Kuek and workforce health through the adoption of international partnerships and developed programmes such as the Bus Captain President and Group Chief Executive Officer standards. Our business units across the Group are certified Career Scheme and Trains Career Scheme for non‑executive The Company is guided by our SMRT is Green environmental to ISO 9001, ISO 14001 and OHSAS 18001. These standards operations and technical staff. Earlier this year, at the executive sustainability programme. Some of our recent initiatives include partnership with 2 Getthere to bring Automated Vehicles to the Asia-Pacific region and energy saving, emissions-reducing G4-1 ∕ G4-2
9 SMRT Corporation Ltd – Sustainability Report 2016 SMRT Corporation Ltd – Sustainability Report 2016 10 Our Strategy
Our 5 Strategic Thrusts Our 5 strategic thrusts guide us in the work that we do and the way we work.
Improving Ensuring Enhancing Entrenching Strengthening Operational Sustainable Customer Organisational Workforce Performance Growth Experience Excellence Health
We are in the business Sustainable growth is a major Our common purpose is to Constantly pursuing excellence, We recognise that a strong of providing safe, reliable consideration in our rail and build trust and bring on smiles, we look within to streamline, workforce is important and comfortable journeys for non-rail businesses. every day and in everyone optimise and improve as we to achieving our business everyone who travels with us. who journeys with us. push ourselves to higher levels. objectives and meeting Our transport businesses We do this through continual the needs of our various Service delivery is extremely operate in an environment that Serving millions of customers learning and adapting stakeholders. Workforce important to us and we continue is governed by high regulatory in our network daily, we to a changing environment while health is achieved through to explore innovative ways standards, and challenged by understand that little things ensuring good governance. a high performance and to enhance our operational heightened operational count. Commuter satisfaction people‑orientated workplace performance. We invest in our demands on service, reliability is important to us and we are We invest in knowledge culture. We groom a workforce systems and our people to and capacity. We continue to continually improving our management and creation that is competent, collaborative achieve the highest standards. invest and be operationally approach to service delivery. to drive long-term growth and continually learning, made ready through the acquisition of and capacity. We embed sustainability in our We aspire to achieve a new level up of people who are valued, new operating assets, asset operational performance by of customer service by engaging We have in place an Enterprise committed and engaged. renewal and life cycle upgrades. ensuring our employees and stakeholders such as employees, Risk Management framework We encourage employees to Our commuters are safe and our We are committed to driving Our customers and the community. to anticipate and mitigate lead a healthy lifestyle and services are reliable. revenue and profit growth on downside risks, while We improve customer service promote work-life integration. Strategic a sustainable basis, supported Supporting simultaneously positioning the Taking a strategic view of by ensuring our workforce We nurture our employees by an entrepreneurial spirit and Company to pursue growth sustainability, we are ready to is trained, empowered and through training and Priorities an innovative mindset to deliver Thrusts opportunities. respond to challenges as we understands our commitment development, and provide them long-term shareholder value. move forward. and values. with a safe working environment.
11 SMRT Corporation Ltd – Sustainability Report 2016 SMRT Corporation Ltd – Sustainability Report 2016 12 Performance Summary
Financial Highlights Non ‑Financial Highlights
Revenue ($m) EBIT3 ($m) Rail1 Non-Rail2 Group Rail Non-Rail Group Health and Safety: 1.37 Environment: 436,941 Employee accident tonnes of CO2e 1,057.2 1,119.5 1,163.9 1,235.5 1,296.6 148.7 110.2 84.2 120.8 138.5 frequency rate 1,253,995,912 kWh 615.6 581.5 79.1 Energy used 500.7 529.7 42.5 477.1 133.3 63.0 108.7 Employee accident severity rate 3 654.0 681.0 90.7 1,253,404m 580.0 618.5 634.1 78.1 64.1 Water used 3.4 9.6 7.4 23 FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016 Commuter 391,481tonnes injuries Waste disposed PATMI4 ($m) Earnings and Dividend Per Share (cents) DPS PATMI ($m) PATMI Margin (%) Basic EPS Customers: 119.9 83.3 61.9 91.0 109.3 7.9 5.5 4.1 6.0 7.2 Close to 8,000 11.3 People: Employees trained 7.45 in service excellence 8.4 15% 7.4 100% 2.50 7.4 4.00 Female Employees who receive regular 3.25 performance and career 2.20 employees development reviews 5.3 FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016 Customer satisfaction level1 40 hours 83% 88% 86% Average number of training hours per employee Cash and Cash Equivalents ($m) Return on Equity (%) SMRT Trains SMRT Buses SMRT Taxis Shareholders’ Funds ($m) ROE (%) 1. Based on Nielsen Customer Satisfaction Survey Community: 195.3 546.3 155.5 156.1 232.2 791.4 768.2 801.8 859.5 915.9 >$2.0million Cash and in-kind sponsorship
15.1
12.3 1,925 hours 11.0 Sustainable Procurement: Staff volunteering 10.7
7.9
FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016
1. Rail includes Train and LRT. 91.7% 2. Non-Rail includes Bus, Taxi, Rental, Advertising, Engineering Services Spending on local suppliers and Other Services, but excludes Investment Holding and Support Services, elimination, impairment of goodwill and impairment of interest in associate. 3. Earnings before Interest and Tax. G4-9 4. Profit after Tax and Minority Interest.
13 SMRT Corporation Ltd – Sustainability Report 2016 SMRT Corporation Ltd – Sustainability Report 2016 14 Performance Summary continued
Awards and Accolades
Operational Performance Best Reward & Recognition Strategies (Special Recognition) ISO 55001 : 2014 HRM Awards 2016 TÜV SÜD PSB Pte Ltd Human Resources Magazine (HRM) Asia
Organisational Excellence Excellence in HR Strategic Plan (Gold) HR Excellence Awards 2015 Internal Audit Excellence Award Human Resources magazine SIAS 16th Investors’ Choice Award 2015 Securities Investors Association (Singapore) Excellence in Graduate Development (Silver) HR Excellence Awards 2015 Achieving Corporate Ethics Mark Human Resources magazine Chartered Institute of Procurement & Supply Excellence in Mature Workforce Practices (Silver) Best Government Sector PR Campaign HR Excellence Awards 2015 The PR Awards 2016 Human Resources magazine Marketing Magazine Excellence in Talent Management (Bronze) Best PR Campaign by In-House PR Team HR Excellence Awards 2015 The PR Awards 2016 Human Resources magazine Marketing Magazine Leading HR Practices in Strategic HR Best PR Campaign – Public Services The Singapore HR Awards 2015 The PR Awards 2016 Singapore Human Resources Institute Marketing Magazine Leading HR Practices in Performance Management Local Hero Brand (Winner) The Singapore HR Awards 2015 Brands Digital Excellence Awards 2016 Singapore Human Resources Institute Heardable, Inc. Leading HR Practices in Employee Relations & People Customer Experience Management The Singapore HR Awards 2015 Singapore Service Excellence Medallion (Service Singapore Human Resources Institute Professional) 2015 SPRING Singapore Leading HR Practices in Lifelong Learning (Special Mention) Singapore Experience Awards (Customer Service The Singapore HR Awards 2015 – Transport) 2015 Singapore Human Resources Institute Singapore Tourism Board Leading HR Practices in Compensation & Rewards National Kindness Award – Transport Gold 2015 Management (Special Mention) Singapore Kindness Movement, Traffic Police & Land The Singapore HR Awards 2015 Transport Authority Singapore Human Resources Institute
Excellent Service Awards (EXSA) 2015 Leading HR Practices in Workplace Safety & Health SPRING Singapore (Special Mention) The Singapore HR Awards 2015 Workforce Health Singapore Human Resources Institute
Best Engagement & Retention Strategies May Day Plaque of Commendation (Gold) 2015 HRM Awards 2016 National Trade Union Congress (NTUC) Human Resources Magazine (HRM) Asia May Day Model Partnership Award (Management Category) 2015 National Trade Union Congress (NTUC)
15 SMRT Corporation Ltd – Sustainability Report 2016 Our Approach to Sustainability
Committing to Sustainability Across the Organisation
Our approach to sustainability is based on accountability and transparency. We are open with our stakeholders about our operations and businesses. This includes our sustainable business growth strategy and how we aim to embed sustainability into our core operations.
Striving to integrate sustainability across our organisation is Identification not an easy task, and remains a work in progress. We remain We began the materiality process by identifying the entire dedicated and are taking progressive steps to achieve our goals. spectrum of material issues that are important to us. An external consultant was appointed to conduct an internal review as well Sustainability Commitments as a review of our peers.
SMRT recently joined the UITP Sustainability Charter as a pledge Prioritisation signatory. As a pledge signatory, we recognise the need to The issues were then prioritised, and the critically important ones incorporate sustainability throughout our businesses. were classified as Tier 1 issues while those of high importance were classified as Tier 2. To stay abreast of developments in our industry, keep ahead of best practices and trends, and collate feedback on how to Prioritisation took into account external and internal improve our business practices, we are members of organisations considerations such as benchmarking with our peers, GRI and such as the UITP, Community of Metros and Nova Benchmarking UITP expectations, our 5 strategic thrusts, our Group top risks Group, International Bus Benchmarking Group, Global Compact as well as our policies and processes. Network Singapore and Securities Investors Association (Singapore). Validation In order to validate the issues, our consultant sought feedback Benchmarks of Excellence from internal stakeholders on the materiality assessment. Discussions were held to determine which issues were significant We subscribe to internationally recognised standards such as for SMRT’s long-term performance, with comments and OHSAS 18001 on occupational health and safety management suggestions taken into consideration. and ISO 14001 on environmental management. Once the material issues have been established, a final These standards are applied through our Health, Safety & review meeting involving the CEO and Management, as well Environmental Management System manual, which covers as representatives from the Environmental Sustainability our system safety, as well as the workplace safety, health and Committee, Human Resources, Procurement and all other environmental aspects of employees, customers, business relevant departments, was held. During this session, a list of partners and the public. 14 material issues was finalised for our Sustainability Report.
Materiality Review Based on the validation process described above, we aim to Materiality Assessment conduct a review of these material issues at an appropriate time. As part of SMRT’s strategic approach to sustainability, a robust materiality assessment was conducted in early 2016. Results from Materiality Assessment This assessment was in line with the Accountability AA1000 Of the 14 finalised material issues, seven were classified as Tier 1 Assurance Standard and GRI’s four-step process of identification, issues and the remaining seven as Tier 2. prioritisation, validation and review to define material issues. The list of material issues can be found on the following page. The extensive materiality assessment process was essential to defining SMRT’s economic, environmental, social and governance material issues that influence the decisions of our G4-15 ∕ G4-16 ∕ G4-18 ∕ G4-27 key stakeholders, and therefore merit inclusion in this report.
SMRT Corporation Ltd – Sustainability Report 2016 16 Our Approach to Sustainability continued
Identification Establish the spectrum of important or material issues that are of relevance to our core businesses.
Consider both external and internal perspectives through a combination of information sources: • Benchmarking study of our peers in the transport industry • GRI G4 guidelines Prioritisation • UITP Sustainability Reporting Framework • 5 strategic thrusts • Group top risks • Existing policies and procedures
Internal discussions and reviews with Management, the Environmental Sustainability Committee and employees. The sessions were facilitated by an independent sustainability expert. Validation
List of 14 key material issues was finalised and signed off by the CEO and Management.
Periodically assess list of material issues (following report publication) based on changing business Review landscape, emerging trends and key stakeholder feedback.
Material Issues
Tier 1 Tier 2
Operational Performance and Excellence Community Investment, Involvement and Development
Anti-corruption / Fair and Ethical Operating Practices Managing Supply Chain Sustainably
Access to Essential Services Diversity and Equal Opportunity
Customer Health and Safety Labour Rights
Occupational Health and Safety (Employees and Contractors) Employee Development and Training
Environment (Climate Change, Energy Management, Water Research and Development/ Innovation for Management, Waste Management, Noise Management, Engineering Capabilities Sustainable Resource Use, Compliance)
Customer Satisfaction Noise
G4-19
17 SMRT Corporation Ltd – Sustainability Report 2016 In line with GRI requirements, we have mapped out the Engagement boundaries of the material issues to determine where the impact We endeavour to engage our key stakeholder groups, lies. All the material issues occur within SMRT, except for access communicate with them and solicit feedback on decisions that to essential services, which lies outside our boundary. affect us mutually.
Operational performance and excellence, customer health Engagement with our stakeholders takes place in a wide and safety, occupational health and safety, environment, variety of formats as shown in the table on the following page. customer satisfaction, community investment, involvement and The stakeholder mapping allowed us to understand the concerns development, managing supply chain sustainably, research and of our stakeholders. We aim to increase our level of engagement development/ innovation for engineering capabilities as well as with them in the coming years. noise have direct relevance within and outside SMRT’s boundary. We are working on developing a stakeholder strategy that will Commitment to Stakeholders underpin all of our interactions and engagement activities with our stakeholders. Our stakeholders are critical to our long-term business. It is essential that we actively engage our stakeholders to understand and look for improved ways to address their economic, environmental, social and governance concerns.
In the coming months, we intend to interact with our key stakeholders to ensure that the material issues are strategically aligned with their expectations.
Stakeholder Identification During the materiality process, we took the opportunity to review our stakeholder groups. These comprised stakeholders who may have an impact on our business, as well as those who are affected by our operations. Shareholders attending our 16th Annual General Meeting on 7 July 2015. The following key stakeholder groups have been identified: Measuring Our Progress
Shareholders, After defining the material issues for our business in FY2016, we Investors and developed sustainability key performance indicators (KPIs) that Analysts are relevant to us and in line with the GRI guidelines as well as the UITP Sustainability Reporting Framework. Customers Suppliers and We have a strong focus on tracking our performance. and Community Contractors Our Information Fusion Centre (IFC) department collates and publishes the Group’s data on an Enterprise-wide Business Intelligence Platform, accessible to relevant users. Information is collected on a regular basis and analysed.
IFC has begun collecting data and monitoring our sustainability KPIs to help us measure and manage our targets. Employees Regulators and Union Moving Forward Our focus will be to drive performance improvements around our key material issues, as these represent our main sustainability Business risks and opportunities. Partners Over the next few years, our intention is to be able to fully integrate sustainability in all aspects of our business units. At the same time, we will also be looking at mega trends which may Stakeholder Mapping affect us in the future by conducting continuous dialogue with The stakeholder mapping exercise was facilitated by the external our stakeholders and taking a risk-based approach to our entire consultant. This was a collaborative process whereby our value chain. material issues were mapped against the concerns and impact on the various key stakeholder groups. This was done through a workshop attended by employees from various departments G4-20 ⁄ G4-21 ⁄ G4-24 ⁄ G4-25 across the organisation.
SMRT Corporation Ltd – Sustainability Report 2016 18 Our Approach to Sustainability continued
Management addressing shareholders at a Kim Chuan Depot visit co-organised with the Securities Investors Association (Singapore) on 25 June 2015.
Stakeholders Forms of engagement
Shareholders, Shareholders • One-on-one meetings and conference calls to provide regular updates on Company Investors and Investors developments and Analysts • Dedicated investor relations email to address queries • Train depot site visits • Quarterly financial esultsr briefings • Annual General Meeting
Analysts • Quarterly financial esultsr briefings • Regular conversations to update on Company developments
Customers and Customers • Social media (Facebook, YouTube, Twitter, LinkedIn) Community • Feedback handling
Community • Educational tours and community programmes • Regular volunteering activities and programmes
Regulators • Regular meetings on statutory requirements and new developments for a wide range of issues ranging from safety to employment
Business • Ongoing progress meetings Partners
Employees Employees • Regular townhalls and Senior Management walkabouts and Union • Newsletters and circulars • Biennial staff engagement surveys
Union • Frequent meetings on upcoming changes in policies and schemes as well as briefings to gather feedback
Suppliers and • Biennial Vendor Day to recognise strategic and high-performing suppliers Contractors • Ad hoc workshops to exchange procurement ideas and procedures
G4-26
19 SMRT Corporation Ltd – Sustainability Report 2016 Our Corporate Governance and Ethics
Achieving High Standards Corporate Governance and Ethics
We are committed to maintaining good governance and business integrity in all our business activities. Conducting our businesses responsibly is fundamental to our long-term sustainability.
Our Board of Directors is highly engaged in overseeing the In March 2016, the Company has also established an additional Company’s affairs. The Group’s corporate governance guidelines Board Committee, namely the Board Safety Review Committee and practices are regularly reviewed and improved, where to review all safety frameworks, processes and procedures within necessary, to enhance our corporate governance framework and the organisation. maintain its relevancy. Ethics and Integrity Our corporate governance framework adheres to the guidelines of the Code of Corporate Governance 2012. Maintaining a workplace culture with strong ethics and integrity is fundamental to good governance. Corporate Governance Structure We maintain a Code of Conduct that prescribes the acceptable Various Board Committees, namely the Audit Committee, and appropriate standards of behaviour expected of all Board Risk Committee, Nominating Committee, Remuneration employees. These standards are anchored on our core values Committee and Executive Committee, have been established to of SMRTnI (Service Excellence, Mastery, Responsibility and assist the Board in discharging its responsibilities. Every Board Respect, Teamwork, Nurture and Integrity), and are meant as a Committee has its own charter which sets out, inter alia, guide for employees in their daily business dealings and personal each Board Committee’s terms of reference, composition conduct. The Code of Conduct is communicated to employees and responsibilities. through various platforms such as the Company’s intranet and orientation programme.
BOARD OF DIRECTORS
Audit Board Risk Nominating Remuneration Executive Board Safety Review Committee Committee Committee Committee Committee Committee
Risk Internal Audit Division Management Committee
Strategy and Risk Business Units via Risk Management Management Office G4-34 ∕ G4-56
SMRT Corporation Ltd – Sustainability Report 2016 20 Our Corporate Governance and Ethics continued
Conducting Our Business Ethically Fair Marketing Communications At SMRT, we uphold the highest standards of professional Whistleblowing Channels and Responding to Fraud values and integrity. We ensure that our employees comply We have clearly defined and well-established whistleblowing with our Code of Conduct while conducting business on behalf channels for reporting and investigating any alleged improper of the Company. For FY2016, we do not have any reported conduct, including corruption. All new employees are briefed incidents of non-compliance with the Singapore Code of on our anti-corruption policies and procedures during the Advertising Practice nor were any legal actions filed against us for Company’s orientation programme. This information is also anti‑competitive behaviour. available on the Company’s intranet. Risk Management Any case of suspected corruption will be reported to the relevant authorities through our internal audit and legal departments, Over the last decade, sustainability trends have gained increasing which keep the CEO and Management informed of such incidents. importance to businesses worldwide. Our approach to identifying applicable trends for the Company and managing associated No incident of corruption was reported in FY2016. risks is to evaluate decisions with a view that risk management is integral to, and not separate from, the Company’s strategy and Conflict of Interest business activities. We conduct an annual exercise for the Declaration of Conflict of Interest and Non-Indebtedness. In this exercise, employees Many of our key material issues are addressed through our are reminded to avoid any conflict between their own interests Enterprise Risk Management framework. and those of the organisation in dealings with suppliers, customers and other third parties, and in the conduct of their Our risk management process is based on the ISO 31000:2009 personal affairs, including dealings in securities of SMRT and our Risk Management – Principles and Guidelines and enables the affiliated organisations. Group to deal with business uncertainties by identifying key risks and implementing the appropriate mitigating plans and We also identify positions which have significant influence actions. The diagram below outlines the key steps in our Risk on procurement and contractual decisions, involvement in Management Process that are used to identify risks and develop financial transactions, and access to sensitive information. mitigating actions. Employees in these sensitive positions are subject to a maximum posting duration of three years, annual declaration on Conflict of Effective risk assessment provides forward-looking insights and Interest and Non-Indebtedness, mandatory annual block leave greater clarity around the sustainability risks we face. With this of five working days, and Control Self-Assessment interventions insight and perspective, we are better positioned to handle risks and insolvency checks prior to filling the position and during the and establish effective and economically practical approaches to review for extension. These checks minimise the risks of collusion managing and monitoring the risks that we face. You can learn and corruption. more about risk management in our Annual Report FY2016.
Fraud Detection As part of the Company’s ongoing fraud detection measures, G4-2 ∕ G4-14 ∕ G4-SO3 ∕ G4-SO4 ∕ G4-SO5 ∕ G4-SO7 ∕ G4-PR7 we have stringent internal controls and internal audit procedures which allow line management to monitor high-risk processes for any fraud or irregularities.
SMRT RISK MANAGEMENT PROCESS
COMMUNICATION AND CONSULTATION
ESTABLISHING RISK RISK RISK DEVELOP THE CONTEXT IDENTIFICATION * ANALYSIS * EVALUATION * ACTION PLANS
Define external and Find, recognise and Understand the Evaluate the Develop action internal parameters describe a risk causes and sources risk against plans to mitigate risk to be considered of risk, potential impact predetermined when managing risk and likelihood of risk criteria occurring
TEST*, MONITOR AND REVIEW
21 SMRT Corporation Ltd – Sustainability Report 2016 Our Health and Safety
Strengthening Our Health Health and Safety and Safety Pillars
The health and safety of our employees and customers are paramount to SMRT. We have a role to play in the delivery of a transport service and lifestyle experience that is safe, reliable and customer-centric. We are committed to applying a proactive health and safety culture across our businesses.
Our Approach to Managing Health and Safety
Safety System Our Safety System, which is closely aligned with our core values, is a framework developed to systematically and methodically manage risks in all work processes. It requires swift investigation of the causal factors of any incident, and promotes a culture of open reporting and organisational learning. The aim is to achieve a safe environment for our employees, customers and business partners.
As part of the System, all employees must adhere to the relevant authorised instructions. They are trained in accordance to their job requirements and are educated on safety awareness before being placed on a job. We have been actively developing a safety culture in the workplace so that our staff place safety first.
Safety Structure We have in place a Safety Structure to demonstrate our commitment to occupational health and safety. The governance structure also serves to promote safe workplace behaviour within the organisation. The SMRT safety system advocates ownership and system discipline, and is an integral part of operations. A Safety Steering Committee, chaired by our CEO, governs the Safety System and drives the safety message across the entire Group. This is emphasised at all levels via the Safety Working Health and Safety Training Committee as well as at safety forums held at the respective Training and education about health and safety are business unit and division levels. Technical Safety Boards in the conducted before we place new employees on the job. Trains and Roads business units have been formed to govern any Equipping our employees with the relevant vocational knowledge, modifications within our transport system to ensure the design safety awareness, values systems and leadership skills is essential integrity of equipment and facilities. in our pursuit of a professional and safe working environment.
We have also established Workplace Safety and Health As part of the Company’s orientation programme, we introduce Committees (WSHC) in accordance with the Workplace Safety our key safety risks and platforms for incident reporting or safety and Health Act. This is in line with our formal agreement with feedback to our new colleagues. We also conduct mandatory the National Transport Workers’ Union to ensure the health training on basic transit safety rules and operating procedures and safety of our employees. Members of the WSHC comprise as well as work and electrical safety for employees from the Management and employees. relevant departments.
Additionally, as part of the Singapore Civil Defence Force At present, our training systems are aligned with OHSAS requirements on fire safety, Fire Safety Managers have been 18001:2007 and ISO 14001:2004. appointed at required locations including all train and bus depots, and MRT stations. Compliance Our Safety System is continually reviewed to mitigate against All our employees are represented in formal joint management- systemic safety risks. It is audited by internal and external auditors worker health and safety committees that help monitor and advise on occupational health and safety issues and programmes. G4-LA5 ∕ G4-LA8
SMRT Corporation Ltd – Sustainability Report 2016 22 Our Health and Safety continued
SMRT employee demonstrating crack detection at the annual SMRT Safety, Security and Quality Day 2016. to confirm the continual effectiveness of the Safety Management We have established a strategic partnership with the Health System and Environmental Management System in meeting Promotion Board and Alexandra Health System to introduce a OHSAS 18001:2007 and ISO 14001:2004 standards, respectively. pilot preventive health screening and coaching programme for These certifications, as well as the BizSAFE STAR certificate, our bus captains under the Healthy Living Master Plan. This is reflect our ongoing commitment and efforts to reduce risks and also extended to our taxi partners. The pilot programme enables to make safety an integral part of our business for the benefit of them to better understand their health conditions and apply our employees, partners and commuters. positive health practices.
In FY2016, we paid a fine of $120,000 for a safety-related incident In 2016, we will set up clinics at two work locations to provide in 2013. medical consultation and services for our employees. In‑house clinics will benefit staff with chronic illnesses as dedicated on-site Employee Health and Safety doctors and nurses will be able to guide them to better control their illnesses and ensure their well-being. We invest significant efforts to emphasise the importance of health and safety in order to build a sustainable workforce. Safety As part of our efforts to inculcate a culture of safety mindfulness, Health we have initiatives instilling individual accountability in safety SMRT encourages all staff to lead a healthy lifestyle. We organise matters. On 25 February 2016, close to 1,400 employees various programmes and initiatives for our employees’ health attended the SMRT Safety, Security and Quality Day 2016. and well-being. Additionally, all employees are covered under The event raised safety, security and quality awareness through the Company’s comprehensive medical and insurance scheme. the sharing of knowledge and experiential learning. We also conduct safety, security and quality forums to update staff on In collaboration with Dayspring Medical Group, annual our achievements and progress, as well as to raise awareness on complimentary health screenings are organised for our key topics. employees. In a recent health awareness event targeted at bus and train captains, blood pressure monitors were installed in We continually review our safety structures, processes and our bus depots and train crew rest points to allow employees to compliance to ensure the well-being and protection of conduct their own health assessments and proactively take steps our employees. to ensure that they are fit to perform their duties.
G4-PR2
23 SMRT Corporation Ltd – Sustainability Report 2016 Performance Employee Accident Frequency Rate1, 2 In 2015, our accident frequency rate and accident severity rate were 1.37 and 42.5 respectively. The rates have generally been declining over the years due to greater education, supervision Health and Safety and enforcement efforts. We will strive to improve on our performance in the coming years as safety is our top priority. 2.68
In March 2016, two trainee employees were hit by an oncoming 2.22 train. This is the first time a fatality involving our staff has 2.12 happened on the North-South and East-West Lines (NSEWL). 1.77 We take full responsibility for the accident and are taking steps to strengthen our safety procedures. 1.37
A SMRT Board Safety Review Committee was set up to look into all safety-related matters in SMRT Trains. The committee will CY2011 CY2012 CY2013 CY2014 CY2015 comprehensively review all frameworks, structures, processes and procedures, and seek assurance that safety is accorded the highest attention and priority in our train operations and maintenance services. The committee will be chaired by an SMRT Employee Accident Severity Rate1, 2 Board Member and include independent members.
We recognise the need to improve communication about safety procedures across our business units, and aim to mitigate serious and reportable incidents. In the coming years, we seek to enhance the emphasis on safety procedures as we strive for 85.5 zero fatalities. Customer Health and Safety 58.7 61.0 SMRT takes a serious view on any potential risk to the health and 46.2 safety of our customers. We regularly monitor and review our 42.5 health and safety procedures to assess their impact and improve on them. CY2011 CY2012 CY2013 CY2014 CY2015
We stepped up efforts to increase safety awareness amongst commuters travelling within our network. We have an educational outreach programme to highlight to participants the safety Number of Commuter Injuries1, 3 features in our network. In 2014, we embarked on a network- wide escalator safety campaign. We also play escalator safety 36 23 18 16 23 announcements frequently to remind commuters to hold on to the handrails when travelling on the escalators.
Performance The majority of commuter injuries were due to escalator-related incidents. During the last year, there were zero fatalities among our commuters.
G4-LA6 ∕ G4-PR1
CY2011 CY2012 CY2013 CY2014 CY2015
1. Data is in Calendar Year (CY) in accordance with Ministry of Manpower (MOM) regulation. 2. CY2014 data excludes cases classified as “Outlier” and those under the new MOM regulation. CY2015 data excludes cases classified as “Uncontrollable”, “Outlier”, “Others” and those under the new MOM regulation. 3. Injuries due to equipment malfunction.
SMRT Corporation Ltd – Sustainability Report 2016 24 Our Environment
Protecting Our Environment
As a leading transport company, SMRT is committed to becoming an industry leader in environmental stewardship. We recognise there are limited resources available for use, and the need to operate within these limits. This has led us to set sustainability goals and push for improvements.
Public transport presents an environmentally friendly option Environmental Sustainability Committee for commuters. As an organisation, we set out to crystallise this further. Over the last few years, we have been implementing and reviewing our environmental programmes and initiatives across In 2008, we officially launched “SMRT is Green”, a Company- our business. We intend to regularly revise these to reflect wide initiative to reaffirm our commitment to environmentally changes in our internal expectations and the expectations our sustainable practices. This led us to adopt green practices such stakeholders have of us. as a green fleet renewal strategy in our operations that is strongly supported and aligned with our Environment Policy. In a move to further strengthen our environmental commitment, we have established a strong environmental governance We also have in place our Green Code of Conduct that outlines structure. In 2015, we set up an Environmental Sustainability the expectation of our employees and business partners to Committee (ESC) to oversee overall environmental sustainability demonstrate commitment in complying with environmental efforts in the organisation. The committee, led by Vincent Tan regulations as well as our Environment Policy. (Senior Vice President, Corporate Services and Rail Operations), comprises representatives from across the organisation. The ESC is our strategic commitment to sustainable development and encapsulates the four pillars of Energy, Water, Waste management and the overall Green efforts within the organisation.
ENVIRONMENTAL SUSTAINABILITY COMMITTEE
Energy Water Waste Green Management Management Management Committee
The ESC’s focus is to engender a culture of environmental sustainability across SMRT.
The Energy, Water and Waste sub-committees review and incorporate environmentally sustainable measures into all aspects of operational and maintenance activities occurring in the network. They spearhead environmental efforts in our premises, promote efficient use of resources and fulfil all relevant legislative requirements.
25 SMRT Corporation Ltd – Sustainability Report 2016 The Green Committee collaborates with the Energy, Water Climate Change and Waste committees to conceive and implement initiatives to promote environmentally sustainable practices. Internally, We are committed to addressing our impact on the environment. this is done through education and awareness programmes. Environment Externally, the Green Committee reaches out to business As a public transport provider, we enable a significant reduction partners, customers and the relevant authorities to promote in greenhouse gas (GHG) emissions by providing commuters green practices and explore possible collaborations as part of with public transport options. It is our responsibility and priority our sustainability initiatives. to mitigate the effects of climate change. We achieve this by managing our carbon emissions. The ESC targets to reduce energy consumption by 10% over five years from 2013, and water and waste consumption by 6% over Our trains, buses and taxis consume energy. As such, we seek to three years from 2015. limit our footprint where economically and technically feasible.
Over the next few years, we aim to increase the robustness of Green Transport our environmental sustainability governance, while ensuring We are always on the lookout for solutions, initiatives and operational excellence. technologies to ensure our fleet of vehicles minimises its impact on the environment. Our Key Environmental Issues Trains Through our materiality assessment, we identified the following Our trains employ regenerative braking. As the electric motors seven areas to be material to us. slow the train down, electricity is simultaneously generated and returned to the power distribution system via the Third Rail. This, in turn, powers other trains within the network. Regenerative braking recovers wasted energy and converts it for use. Climate Change We equipped two trains with the Permanent Magnet Synchronous Motor (PMSM)-based propulsion systems as part of our ongoing Energy train fleet refurbishment. The PMSM-based propulsion systems Compliance Management consistently achieve close to 40% energy savings when compared to the existing system.
We have also programmed to switch off the air conditioning and lighting in our trains that are withdrawn from service and deploy more energy-efficient trains during off-peak hours in an effort to reduce our carbon footprint. Sustainable Resource Water Use Management
Noise Waste Management Management
Trains employ regenerative braking to achieve savings on traction energy consumption.
G4-EN7
SMRT Corporation Ltd – Sustainability Report 2016 26 Our Environment continued
Buses To promote better air quality, SMRT became the first public National Sustainability Targets transport operator in Singapore to introduce Euro V-compliant buses to our fleet in 2008. More than 1,000 Euro V-compliant The deployment of green vehicles reflects our buses now ply the roads. Euro V-compliant vehicles produce less ambition to embed sustainable practices in our harmful emissions and make for a greener journey. operations. This ties in strongly with the Sustainable Singapore Blueprint 2015 that promotes the use of We have also equipped our buses with telematics technology green transport. Additionally, as a public transport which encourages eco-driving through tracking and analysis of operator, we play a critical role in the ambitious driving parameters such as the speed of the bus and how the Blueprint plans to prepare the nation for a ‘car-lite’ bus negotiates a corner. This initiative encourages safer and society. fuel‑efficient driving practices. We also support the regulator’s commitment in building a sustainable land transport system in Singapore. The Land Transport Authority (LTA) is targeting to achieve a 75% public transport modal share during both the morning and evening peak hours by 2030, and we will play a pivotal role in achieving this target as a transport provider and operator.
We believe in resource conservation, reducing our energy use and enhancing the living environment of the people who use our services.
Pledging our Commitment
Environmentally friendly buses contribute to better air quality. In commemoration of Earth Day 2015, the Green Committee launched a ‘Pledge and Be Spotted Going Car/Emission-Free’ campaign. The objective Taxis was to raise awareness for environmental protection Since 2013, SMRT has introduced more than 1,500 Toyota Prius and reduce our carbon footprint. Staff were Hybrid taxis which have excellent fuel efficiency and cleaner encouraged to adopt car-free or emission-free emissions. They produce less carbon dioxide emissions and modes of travel during that month and over 1,000 are extremely fuel-efficient due to the intelligent design of the staff pledged their support. electric motor and petrol powered engine. To date, the Hybrid taxis comprise over 40% of our entire fleet.
Automated Vehicles In a collaboration with technology provider 2 Getthere, we have been operating the Personal Rapid Transit system in Masdar City, Abu Dhabi, since 2010. The system provides passengers with an on-demand transport service featuring individual, driverless and autonomous electric pod cars.
With an energy consumption of only 0.087kWh per passenger kilometre, the system is a considerable improvement over conventional transit. In addition, emissions such as carbon dioxide are prevented.
Hybrid taxis offer passengers smoother rides that are clean and green.
27 SMRT Corporation Ltd – Sustainability Report 2016 Energy Management Performance Our energy consumption and GHG emissions have been At SMRT, we employ suitable technology and processes for increasing over the years due to the increase in the number of optimal energy conservation. vehicle trips to better meet the needs of commuters. Environment
We regularly track our energy usage across our transport In FY2016, our total energy consumption, which includes network, offices and depot as part of our energy management electricity consumption from our trains and diesel consumption initiatives. In accordance with the Energy Conservation Act, we from our buses, was 1,253,995,912kWh. We have not included have appointed energy managers in SMRT. Energy managers the fuel used in our taxis as the vehicles are independently are also members of the Energy Committee. Energy managers operated by our taxi partners. actively monitor and track our energy consumption as well as GHG emissions.
Energy Reduction Initiatives Total Energy Consumption (kWh) The Energy Committee has targeted to reduce energy 1 consumption by 10% over five years from 2013. Since then, a Fuel Consumption Electricity Consumption series of energy saving initiatives – both technical and operational – have been rolled out and are outlined below.
• Employing district cooling at Raffles Place MRT station, which uses cooled water to cool the air, thereby reducing the 652,622,407 629,079,106 consumption of electricity 612,441,383 514,334,860 • Replacing chillers in City Hall MRT station with newer models with optimised capacity to achieve higher energy efficiency • Replacing plasma screens in our stations to Liquid Crystal 535,673,689 560,662,370 601,373,505 508,966,836 Display (LCD) or Light Emitting Diode (LED) screens • Switching off the Rail Travel Information System screens in our stations during non-revenue hours FY2013 FY2014 FY2015 FY2016 • Programming High Volume Low Speed fans at selected elevated stations to be switched off one to two hours before the end of revenue service • Installing motion-sensor lights in washrooms at selected Total GHG Emissions2 (tonnes of CO e) depots 2 Scope 1 Scope 2 • Putting up energy conservation messages in our commercial spaces
Our energy-efficient vehicles and energy management initiatives of our vehicles also contribute to the reduction in energy 282,063 consumption. These are covered in the Green Transport section. 275,537 271,888 252,641 We have plans to install highly energy-efficient LED lighting system at selected stations that can potentially lower energy consumption by 50%. 154,878 131,059 138,860 145,427 Renewable Power FY2013 FY2014 FY2015 FY2016 As a pilot project, we are exploring to install a 1. Fuel conversion factor was based on Carbon Disclosure Project 2014. 1MWp solar photovoltaic (PV) system on the rooftop 2. The GHG Protocol defines scope 1 as direct GHG emissions from of Bishan Depot. Promising a renewable and cleaner operations that are owned or controlled by the organisation and scope 2 energy source, the solar PV system generates about as the indirect GHG emissions that result from the generation of 0.2% of the total electricity consumption on the purchased or acquired electricity, heating, cooling and steam consumed within the organisation. North-South and East-West Lines. Should the trial Electricity grid emission factors were based on Singapore Energy prove successful, we may install the solar PV across Statistics 2015 and fuel conversion was based on Defra conversion our network. factors 2012-2015.
G4-EN3 ∕ G4-EN6 ∕ G4-EN15 ∕ G4-EN16 ∕ G4-EN19 ∕ G4-EN27
SMRT Corporation Ltd – Sustainability Report 2016 28 Our Environment continued
Train washing plant includes a water recycling system.
Water Management Water Reduction Initiatives Our train and bus washing plants have a recycling feature that The sustainable and responsible use of our water resources is a minimises the use of water. The water used for the final rinse of key issue globally. We are aware that water shortages, excessive the vehicles is collected in recycling tanks for pre-washing the demand and usage could pose a serious problem. next train or bus.
Issues like climate change will likely worsen the situation. As part of Singapore World Water Day in March 2016, we We believe we play an important role in conserving and recycling collaborated with PUB to have water conservation decals at this precious resource. station restrooms. Additionally, stickers were distributed to over 700 shops in our network. As a forward-looking organisation with extensive island-wide operations, conserving our precious water resource is an Performance important goal for us. Hence, water is a key material issue. Our total water usage in FY2016 was 1,253,404m3. There was a reduction of 5,387m3 over the previous year. At SMRT, water is sourced from the mains supply provided by PUB. We aim to reduce and recycle the amount of water we use.
Total Water Consumption (m3) Waste Management
Our waste management includes the collection, transport, processing, recycling and disposal of waste materials. With an 1,258,791 1,253,404 emphasis on prevention, reuse and recycling, we aim to reduce the amount of waste we generate.
Toxic industrial waste such as waste oil, oil-stained gloves and rags are recycled, incinerated or landfilled, while metal parts are reused. Toxic waste generated from our operations is disposed by a National Environment Agency-approved toxic waste removal company.
FY2015 FY2016 Non-hazardous general waste is incinerated or landfilled in line with the regulatory requirements in Singapore.
G4-EN8 ∕ G4-EN9
29 SMRT Corporation Ltd – Sustainability Report 2016 Hazardous Waste Disposed 1 Prevention by Disposal Method (tonnes) (Most Preferred Option) FY2015 FY2016 Environment
2 Reduction 430,020 358,350 3 Reuse
9,615 8,013 4 Recycling 21 18 119 100 Reuse Recycled Incineration Landfill 5 Energy Recovery Waste Disposed (tonnes) 6 Hazardous Waste Non-hazardous Waste Disposal
439,774 Waste hierarchy structure in managing waste. 366,481
30,000 25,000 Performance We have reduced the amount of waste disposed over the past FY2015 FY2016 year. The total amount of hazardous and non-hazardous waste disposed fell from 469,774 tonnes in FY2015 to 391,481 tonnes in FY2016.
Waste Reduction Initiatives In 2014, we implemented an electronic approval system, EchoSign, to minimise the need for physical documents. We also Noise Management recently switched to printers with a function that allows us to select documents to print while deleting those that are no longer We are continually improving and implementing checks to required. This reduced the waste generated. mitigate the effects of noise on the community.
Waste Water Treatment We conduct regular surveillance on noise levels to ensure we Our train and bus washing plants are equipped with water keep them to a minimum. We have noise monitoring systems treatment systems for treating the waste water from washings. to measure the noise generated by trains at selected locations Before waste water may be discharged, oil and sand particles are close to major housing estates and residential areas. The results filtered out, the pH level of the water is neutralised, and harmful of this monitoring help us identify locations where the noise metal-based pollutants are removed. levels are close to the guidelines. We prioritise preventive maintenance works at these locations to ensure these guidelines Managing Spills are not breached. To address spills in the workplace, we have spill containment kits in place. Regular workplace inspections are also conducted In FY2016, we addressed 303 feedback on noise generated by to identify any potential spills or areas of concern within our train and bus operations. We follow up on every feedback the workplace. in accordance with our internal procedures. The majority of the feedback received was about track maintenance and sleeper No significant spills were recorded in FY2016. replacement works.
G4-EN23 ∕ G4-EN24 ∕ G4-SO11
SMRT Corporation Ltd – Sustainability Report 2016 30 Our Environment continued
Noise Reduction Initiatives possible. This not only leads to operational improvements, but With the completion of sleeper replacement works on the also helps us become a more sustainable organisation. North-South Line in April 2015, we are currently in the process of replacing the 92,000 timber sleepers on the East-West Line, To demonstrate our commitment, we manage and ensure which were installed in the 1980s, with concrete ones. We take sustainable use of these resources through green certifications. proactive measures to control the noise level from the works by installing sound barriers and protection gauzes around sound- Our headquarters is Project: Eco-Office certified. This certification emitting devices like generators. Noise monitoring systems have recognises our efforts in promoting environmentally friendly also been installed to help us monitor and control noise levels as work habits. We are currently looking to certify our depots as we work. Eco-Offices.
Woodlands and Ang Mo Kio MRT stations were awarded the Building and Construction Authority (BCA) Green Mark (Gold) Award in 2013 and 2014 respectively. These eco-stations have improved air ventilation, water-efficient washrooms as well as recycling facilities.
Additionally, our retail tenants at Woodlands and Ang Mo Kio Xchanges are Project: Eco-Shop certified. Project: Eco-Shop is our collaboration with the Singapore Environment Council (SEC), and is Singapore’s first national eco-certification programme for shop owners. It guides and encourages shop owners to adopt eco-friendly habits and implement green practices in their daily operations. For instance, tenants at these Xchanges use Compact Fluorescent Lightbulbs that last longer and require less energy. We will continue to work with SEC to promote this programme to our other tenants in the retail network, as well as reach out to other shop owners in Singapore.
Compliance PMSM-based propulsion systems produce less noise. The management of environmental issues is guided by our Company-wide Health, Safety & Environmental Management In addition to reducing power consumption by close to 40%, the System manual. It sets out clear guidelines for each of PMSM-based propulsion systems used in our trains is quieter by our significant environmental issues and our management up to 12 decibels. approaches. Our approach is to firstly avoid negative impacts wherever we can, and secondly to mitigate any impact that is Another contributor of track noise is uneven track surface. We use unavoidable. In line with ISO 14001:2004, any incidents relating a Rail Grinding Vehicle to grind track surfaces for smoother to safety, health and environmental sustainability are reported to and less noisy train operations. To do this more efficiently, we the SMRT Inspectorate department and relevant Management have invested in a high-tech automatic track inspection system as soon as possible. called Rail Vision that allows for continual monitoring of track conditions, even during train operating hours. Our procedures are audited annually by internal and external auditors to confirm the continual effectiveness of our processes Preventative maintenance, such as wheel profiling where we in meeting the OHSAS 18001:2007 and ISO 14001:2004 grind the wheels to maintain an even roundness for each wheel, standards, respectively. is also essential to allow the trains to travel smoothly with less noise. Our train wheels are mounted with sound absorbers. SMRT is committed to full compliance with all applicable environmental legal requirements enforced by local governing We will continue to implement initiatives that make our operations authorities in Singapore and the overseas markets in which and maintenance work less disruptive for the community. we operate. Our internal teams ensure that all our business operations comply with existing regulatory requirements through constant monitoring and audits.
Sustainable Resource Use We have not committed any non-compliance with environmental regulations that resulted in fines or sanctions in the last year. We strive to use our resources wisely, and make timely investments in technology and systems that allow us to manage and reuse waste, water, energy and other resources whenever G4-EN29
31 SMRT Corporation Ltd – Sustainability Report 2016 Our Customers
Delivering an Unparalleled Customer Experience Customers
Every day, we make more than three million passenger journeys possible on our trains and buses. Each and every journey is important to us, and we are committed to providing our passengers with the highest level of service.
We believe in delivering a positive customer experience by and have been recognised for their contributions. Over the providing safe and reliable services, fostering a service excellence past year, the LAs had recognised over 400 colleagues who mindset, improving customer touchpoints, acting responsively, went the extra mile for commuters. We will continue to refine and communicating effectively. the LA programme to make it more relevant to inculcate service excellence within the organisation. Providing Outstanding Customer Service Our inaugural Customer Experience Innovation (CXI) Conference We drive and sustain the Company-wide service excellence held on 21 January 2016 marked a significant milestone in efforts to bring about exceptional customer experiences. our efforts to raise the level of customer experience through innovative means. Almost 500 SMRT employees as well as senior Inculcating a Culture of Service Excellence members of the Public Transport Council, LTA, e2i (Employment We partnered with NTUC Learning Hub and Disney Institute and Employability Institute), SPRING Singapore and local to create a Service Excellence framework which anchors all our transport industry experts attended the CXI Conference. employees towards a common purpose and service standard. The event saw thought leaders in service excellence from The result of this partnership was a specially tailored Workforce various industries come together to share methods of increasing Skills Qualification service training modules that our employees customer engagement and satisfaction. We also showcased the are scheduled to complete. Close to 8,000 SMRT employees upcoming SMRT Active Route Map Information System (STARiS) have completed their training. 2.0 which enhances the travel experience for commuters travelling on NSEWL trains. It displays detailed station information to help We have identified 120 Service Excellence Leader Ambassadors commuters navigate through the station to the street level upon (LA) from across all business units. They act as change agents arrival, and points out landmarks in the vicinity of the station. who inspire employees to provide excellent service. They have The STARiS 2.0 system will be available on new NSEWL trains undergone training workshops, participated in check-in sessions that are expected to come into service in 2016.
STARiS 2.0 will enhance the travel experience for commuters travelling on NSEWL trains.
SMRT Corporation Ltd – Sustainability Report 2016 32 Our Customers continued
The enhanced SMRT CONNECT mobile application provides robust service-related information.
Recognising Excellent Service Trains At SMRT, we celebrate and recognise employees who go the At our train stations, we piloted a double queue system aimed extra mile to deliver good service with our quarterly SMRTnI at improving the flow of commuters boarding and alighting Service Excellence Campaign. Employees who display exemplary from trains. We also introduced new LED display panels at customer service are also presented with the CEO Service platforms across the train network. The LED display panels allow Excellence Awards. Between April 2015 and March 2016, over better presentation of the arrival time and destination of the 400 employees were lauded for their excellent service through approaching train. Aside from these, we have launched initiatives this campaign. such as mobile charging points for passengers requiring a quick charge of their devices and a technical defect reporting channel At the national level, over 1,200 SMRT employees were called SNAP-REP (Snap and Report) which allows passengers to recognised for their stellar customer service at the Excellent give quick comments and share pictures via WhatsApp. Service Awards (EXSA), National Kindness-Transport Gold Awards (TGA) and Singapore Experience Awards. Buses Our bus commuters now enjoy high-tech and customer- Apart from our employees, our taxi partners’ ability to deliver centric features at the Choa Chu Kang Bus Interchange, Yishun exemplary service to taxi passengers is also a key pillar of our Temporary Bus Interchange and Woodlands Temporary Bus business proposition. EXSA and TGA recognised 173 and six of Interchange. These interchanges are equipped with interactive our taxi partners respectively for demonstrating excellent service panels that provide next and subsequent bus departure times, and going the extra mile. route information, fares, maps, a journey planner and a feedback form. Real-time bus departure times are also available through Customer Touchpoints the information panel installed at the queue berths.
SMRT continues to enhance the commuter experience and Taxis touchpoints through the introduction and expansion of service One hundred SMRT taxis have each been fitted with an Automatic initiatives in our network. External Defibrillator (AED) device to improve response time in the event of cardiac emergencies. “AED on Wheels” is a three- In the virtual space, our social media presence provides timely year pilot programme to increase the availability of AEDs through information to commuters through our Facebook and Twitter public transport. Our taxi partners are certified by the Singapore accounts. We also enhanced our mobile application, SMRT Heart Foundation after undergoing a four-hour course where CONNECT, to provide robust service-related information. they learnt how to use the AED and CPR techniques.
We also enhanced our Mobile Data Terminals in July 2015 to improve the overall booking experience for passengers. One of the new features enables our taxi partners to identify passengers who have made prior bookings with us.
33 SMRT Corporation Ltd – Sustainability Report 2016 Service Enhancements Taxis We make every effort to enhance service availability and Trains environmental sustainability. Our commitment to fleet renewal New trains are being added progressively to the NSEWL and saw the addition of new Toyota Prius Hybrids to what is already Circle Line (CCL) as well as the Bukit Panjang Light Rail Transit Singapore’s largest Hybrid taxi fleet. Customers (BPLRT) to increase the overall passenger capacity. In FY2016, 24 new trains and 19 new train-cars were introduced on the CCL Accessibility and BPLRT respectively. In FY2017, 45 new trains will be added to the current fleet for the NSEWL. The larger train fleet on the As a public transport operator, accessibility is one of our NSEWL will also allow older trains to be removed from service to top priorities. undergo critical maintenance and a signalling system upgrade. We currently offer travel concessions on our trains and buses The re-signalling works are progressing well and expected to be to help selected commuter groups, such as senior citizens and completed on the North-South Line in 2016 and on the East- persons with disabilities, with transport costs. These concessions West Line in 2018. When fully operational, the new signalling are funded by the Government and we are reimbursed the system will allow trains on the NSEWL to be spaced 100 seconds difference between the concession fare charged and the full apart, from the current 120 seconds. This will shorten the wait adult fare. for trains and ease congestion at platforms during peak periods. Trains For faster and more comfortable rides, we intensified the At our train stations, we have established Care Zones for replacement of wooden sleepers with concrete ones and commuters with special needs. These zones allow commuters completed replacing all the sleepers on the North-South quick access to Emergency Phones to contact station staff for Line in April 2015, ahead of schedule. Work on the East- immediate assistance. We also have priority stickers to identify West Line commenced in November 2015 and we have made passengers with needs who would appreciate a seat. Tactile paths steady progress. for the visually handicapped have also been installed to provide a smoother journey for them. On the NSEWL, we are also replacing about 200km of Third Rail, which powers the trains, to better cope with more trains and the Buses new systems on which they run. The works are expected to be At the newly opened Woodlands Temporary Bus Interchange, completed in 2017. a free buggy service is available for commuters who may have difficulty walking and require assistance to get to the bus berths Concurrent with this effort, we began the upgrading of our at the extreme ends of the interchange. Pedestrian ramps linking power substations in early 2015. We have also been in discussion the interchange to Woodlands MRT station were built to improve with the authorities to improve the overall design of the NSEWL’s power network in view of the new signalling system and increased loading as a result of more trains running.
In our effort to provide safer and more reliable journeys, we have also embarked on progressive upgrades of our first and second generation train fleets, which have been in service for more than 20 years. The upgrading programme of our second generation fleet of 19 Siemens C651 trains by Singapore Rail Engineering has commenced and is expected to be completed in 2018. The upgraded Siemens C651 trains will have new or refurbished train sub-systems, such as air-conditioning, electrical doors, brakes and more efficient propulsion systems.
Buses Four new services – 301, 805, 983 and 979 – were added to better connect residents in the western and northern parts of Singapore, bringing our total number of services to 106.
In the past year, we have grown our fleet. Since May 2015, we have progressively added 190 buses to our existing fleet of over 1,400 buses. Delivery of these buses will be completed by end 2016.
SMRT continues to increase capacity and service through the Bus Service Enhancement Programme (BSEP). BSEP, which was first announced in 2012, introduces more buses to both existing and new routes to enhance service connectivity. Selected MRT stations have designated Care Zones at train platforms.
SMRT Corporation Ltd – Sustainability Report 2016 34 Our Customers continued
WAB services cater to the needs of mobility-impaired commuters. accessibility for commuters in wheelchairs. A Tactile Guidance Ensuring Security System, which includes Braille guidance on handrails, helps the visually impaired locate waiting areas. We are mindful that transit systems are vulnerable to threats and the security of all passengers travelling in our transport network We introduced more Wheelchair Accessible Bus (WAB) service is important to us. We have in place measures such as CCTV routes in FY2016, bringing our current total to 59 routes. surveillance, fence intrusion detection system and access control Currently, 80% of our buses are wheelchair accessible, and this protocols at our premises to protect our customers. is in line with the Transport Masterplan target for all buses to be wheelchair accessible by 2020. Customer Data Privacy
Taxis SMRT protects the privacy and confidentiality of our customers’ SMRT’s fleet of 30 London taxis provides ample space for information. We safeguard customer information with stringent high‑backed and motorised wheelchairs. Our London taxi drivers internal policies and do not divulge any such personal information have undergone on-the-job training to serve passengers with to third parties for marketing or promotional purposes. special needs. We conform to Singapore’s Personal Data Protection Act which protects customers’ personal data and privacy. In FY2016, we Incident Management had no substantiated complaints regarding breaches of customer privacy and loss of customer data. We acknowledge the importance of a safe, reliable and customer-centric travelling experience. Our Business Continuity Our Performance Management system ensures that we deliver on our obligations and promises to our customers to address uncertainties that may Customer Satisfaction impact on our operations. The latest Public Transport Customer Satisfaction Survey indicates an overall increase in satisfaction levels with Singapore’s public We have developed a suite of business continuity and response transport services. The Customer Satisfaction Index Singapore plans covering various scenarios, such as rail disruption, bus and Nielsen Customer Satisfaction Survey results also mirrored incident, flu pandemic and severe haze. These plans ensure that improvements in SMRT’s transport services. we are ready to respond when the need arises. The results of these surveys help us understand commuter We conduct internal exercises on a regular basis to identify expectations and needs. gaps and shortfalls within these plans and procedures, and to strengthen our employees’ knowledge and competency in responding to incidents. These exercises range from component G4-PR5 ∕ G4-PR8 drills to table top exercises and ground deployment exercises.
35 SMRT Corporation Ltd – Sustainability Report 2016 Meeting Operational Standards Public Transport Customer In FY2016, our Train Service Availability was above the national target of 98% across our rail network. We maintained train service Satisfaction Survey availability at 99.85% for the NSEWL and 99.98% for the CCL, MRT Bus compared to the national target of 98%. The BPLRT performed Customers well at 99.88% service availability, against the national target of 99.5%.
90.2% 90.7% For our buses and taxis, we have consistently met the Quality of Service standards.
In FY2016, the LTA intends to impose a financial penalty of 92.8% $5.4 million for the system-wide disruption on the NSEWL that 93.2% occurred on 7 July 2015.
2014 2015 Benchmarking our Performance Trains Customer Satisfaction SMRT is an active member of the international benchmarking group, Community of Metros (CoMET) Index Singapore and Nova, comprising leading global metros. SMRT Trains SMRT Buses SMRT Taxis CoMET and Nova provide a platform for metros to learn best practices from each other, compare performance and exchange ideas. SMRT was ranked the most manpower-efficient network. 63.5 66.2 Buses As a member of the International Bus Benchmarking 60.4 Group since 2009, we have consistently performed 57.7 well among our counterparts. Our performance is on a par with the leading bus operators in the areas of 59.6 61.5 punctuality and safety of commuters, with a record of one of the fewest accident fatalities. 2014 2015
Our operating cost per vehicle kilometre is also among the lowest in the group. Nielsen Customer Satisfaction Survey SMRT Trains SMRT Buses SMRT Taxis The Road Ahead
In the coming year, we are committed to providing the best for our customers and will continue to innovate and improve their travel experience. 86% 80% We hope to achieve more recognition for our efforts through national, regional and international accolades. 85% 88%
We will also measure the progress of our initiatives and efforts 78% 83% through surveys, and benchmark ourselves against various national and international customer satisfaction indices. 2014 2015
G4-PR9
SMRT Corporation Ltd – Sustainability Report 2016 36 Our People
Taking Care of Our Employees
We recognise that our employees are vital to achieving our sustainability and growth goals. Workforce health, one of our 5 strategic thrusts, is achieved through a professional and engaged workforce. We believe in nurturing our people to develop their skills and knowledge to remain relevant in a constantly changing environment.
Health and Safety SMRT places great emphasis on Labour Relations with the National Transport Workers’ Union (NTWU). A Collective Agreement is We provide a safe work environment for our employees and in place and renegotiated every three years. All non-executive actively promote awareness on workplace health and safety. employees are actively encouraged to exercise their right to join More information on this topic can be found in our Health and the NTWU, and the Company supports this process by facilitating Safety section. recruitment roadshows. As a result, union membership is high at 80%. Union members are entitled to submit claims on their union Employee Rights membership fees and are provided a hassle-free process of paying their union dues through direct deductions from their monthly SMRT upholds and respects all employees’ fundamental rights salaries. Through their participation in the union, employees are to freedom of association and trade union membership. This is educated on their rights, as well as platforms available to surface in accordance with the Industrial Relations Act that allows trade their grievances such as workplace disputes or appeals against unions to represent employees for collective bargaining and to termination of contracts, if any. A dispute resolution process is provide employees with an avenue to seek redress for disputes codified in the Collective Agreement to ensure that disputes are or grievances as and when they arise. promptly addressed.
Living a Balanced and Healthy Lifestyle Officially launched on 11 September 1993, the SMRT Corporation Sports and Recreation Club (SCRC) has been a key custodian in encouraging engagement and interaction for our employees as well as their families and friends.
Sports, social and recreational activities are frequently organised to cater to the interests of everyone. SCRC also provides support for like-minded members to form common interest groups.
Key activities during FY2016 included the 6th annual MySMRT Run in January involving 720 employees across the recreational and competitive categories, and a trip to ‘The Future Of Us’ exhibition which saw our employees and their family members enjoying the evening together to learn more about Singapore’s journey into the future.
SCRC remains committed to engaging its members and managing the Club as a place where employees can come together to enjoy and build strong, resilient relationships with each other.
MySMRT Run is one of many activities organised by SCRC, aimed at engaging staff through sports.
G4-11 ∕ G4-16 ∕ G4-HR4
37 SMRT Corporation Ltd – Sustainability Report 2016 In recognition of our excellent labour relations, NTUC awarded • Provide employees with fair access to training and SMRT the Plaque of Commendation (Gold) and May Day development based on their strengths and job functions. Model Partnership Award (Management Category) in 2015. • Reward employees fairly based on their ability, performance, These awards are a testament to the strong relationship built with contribution and experience.
the Labour Movement and our contributions towards improving People the welfare and employability of our workers. At SMRT, we abide by Singapore’s human rights and labour standard frameworks. We also signed the Employers’ Pledge At SMRT, we also manage and protect our employees’ of Fair Employment Practices by the Tripartite Alliance for personal data in accordance with the Singapore Personal Data Fair & Progressive Employment Practices. We recognise our Protection Act. diverse workforce and commit to ensuring an equal opportunity workplace free from discrimination and harassment. Our policies Diversity, Equal Opportunity and in recruiting, developing, promoting and retaining employees Fair Employment are based on each individual’s merit, regardless of their age, gender, race, religion or nationality. All employees in SMRT SMRT advocates fair and merit-based employment for each and receive regular performance and career development reviews, every individual who works for us. We adopt the following equal irrespective of gender or employment category. opportunity principles in our Human Resource (HR) practices: In FY2016, one complaint about discriminatory behaviour was • Recruit and select employees on the basis of merit (such filed against the Company. This claim was investigated by the as skills, experience or ability to perform the job), without Ministry of Manpower and was found to be unsubstantiated. regard to factors such as age, race, gender, religion, marital status or disability. G4-10 ∕ G4-LA11 ∕ G4-LA12 ∕ G4-LA13 ∕ G4-LA16 ∕ G4-HR3
Workforce Distribution by Workforce Distribution by Gender Employee Category and Gender Male Female Male Female
15% 17% 29% 14%
83% 86% 71%
85% Senior Executive Non- Management executive 1.1% 11.3% 87.6%
Workforce Distribution by Workforce Distribution of Permanent Employment Contract and Gender Employees by Employment Type and Gender Male Female Male Female
13% 27% 13% 29%
87% 87%
73% 71%
Permanent Contract Full-time Part-time 84.6% 15.4% 99.9% 0.1%
SMRT Corporation Ltd – Sustainability Report 2016 38 Our People continued
Taking Care of an Ageing Workforce Employee Training and Development
As our headcount grows to meet heightening capacity and SMRT is committed to developing a competent and future- maintenance needs, we continue to shape a lean and productive ready workforce. In building a professional workforce for the workforce with a sustainable age and nationality profile. To retain public transport industry, SMRT has developed and rolled out fit and skilled experienced employees, we extended the re- competency-based career roadmaps. Our Bus Captain Career employment age to 67 years old, ahead of the change in the Scheme and Trains Career Scheme for non-executive operations national statutory mandate. Complementary Age Management and technical staff provide attractive career propositions for and Workforce Health taskforces have been commissioned our employees. Employees enjoy career development and to address the needs of our fast-maturing workforce progression opportunities that are anchored on competency- and strengthen employees’ physical and mental health. building, core values and productivity. This enables us to grow a Recommendations from these taskforces include greater corps of dedicated and competent employees to drive reliability, automation, better illumination, improved ergonomics, job service excellence and business growth. redesign, flexible work arrangements, enhanced healthcare provisions and health-and-wellness programmes. Rail engineers are the core of SMRT and we pay close attention to their professional development. In May 2015, we launched Benefits and Welfare the SMRT Train Engineer Professionalisation (STEP) programme to develop our railway engineers in Trains and Singapore The Central Provident Fund (CPF) Scheme is a comprehensive Rail Engineering. We have since conducted five runs of the social security savings plan which aims to provide working foundational STEP-IN (INduction) development programme for Singaporeans and Permanent Residents with a measure of new engineer hires, and two runs of STEP-UP (UPgrading) to financial security for their retirement years. upgrade and energise incumbent engineers.
As per the legal requirements, SMRT makes contributions directly SMRT plays a leading role in our collaboration with the authorities to our employees’ CPF accounts. The extent of contribution is and other industry partners to promote the rail engineering computed based on a percentage of each employee’s monthly industry and professionalise our rail engineers. Our collaboration salary and varies according to the employee’s age. These savings with the Institution of Engineers, Singapore has led to the earn a minimum risk-free interest of 2.5% guaranteed by the successful launch of the Chartered Engineer programme for Government and can be used for a variety of purposes, including railway and transportation professionals. This accreditation healthcare expenses and housing loans. recognises the professional skills and values attained by our railway engineers as they go through our STEP programme. We are in full compliance with statutory requirements for benefit Since its launch, 192 of our engineers have embarked on their plans in Singapore as well as in the other countries we operate. journey towards attaining chartership. We have strengthened
Caring for Our Taxi Partners We are constantly developing new initiatives to better meet the needs of our taxi partners.
SMRT Taxis has pledged more than $2.5 million in incentives to reward taxi partners and help defray rising operational costs. This includes Medisave top-ups, fuel and road tax rebates as well as loyalty incentives. We have introduced an incentive bonus of up to $5,000 under the referral scheme. SMRT Taxis has enhanced the sponsor scheme for new drivers who have obtained their Taxi Drivers Vocational Licence. We committed a total of over $15,000 worth of bursary awards that were given to 52 partners to support their children’s education and a total of $20,000 to the Helping Hand Fund.
A Bus Captain undergoing simulator training at SG BTEC.
G4-EC3 ∕ G4-LA10
39 SMRT Corporation Ltd – Sustainability Report 2016 SMRT Train Engineer ASSOCIATE SENIOR LEAD Professionalisation Career Roadmap Job Levels Job Levels Job Levels 1 Executive Engineer 3 Senior Engineer II 6 Chief Engineer 2 Senior Engineer I 4 Principal Engineer 7 Engineering Fellow People 5 Senior Principal Engineer 8 Principal Engineering Fellow
Development and Progression Development and Progression Development and Progression Entry Level Section Manager or equivalent Department Head Chartership Phase I Training Deputy Section Manager or equivalent SMRT Master Engineering Course SMRT Basic Engineering Course I SMRT Intermediate Engineering Course Post-graduate Engineering Degree SMRT Basic Engineering Course II SMRT Intermediate Leadership Course SMRT Senior Leadership Course Accreditation as a Railway and Transportation Individual Contributor Branch Manager or equivalent Division Head Chartered Engineer Chartership Phase II Training SMRT Advanced Engineering Course PhD / Engineering Doctorate SMRT Basic Engineering Course III SMRT Advanced Leadership Course Accreditation as a SMRT Basic Leadership Course Professional Engineer
STEP Career Roadmap provides SMRT’s rail engineers with structured competency-based development throughout their career life cycle. ground maintenance leadership with the new Engineering Employee Engagement Maintenance Manager Career Scheme. Aligned with the SkillsFuture intent of enabling career progression through skills In the past year, we have continued to strengthen employee upgrading, both diploma and degree holders can now hold key engagement through various communication channels and positions in frontline maintenance. These measures to continually activities. SMRT’s employees continue to be highly engaged. develop and effectively deploy our engineers are coupled with Our Organisation Climate Survey (OCS), conducted by Towers competitive remuneration packages to better attract and retain Watson, indicated that 9 in 10 of our employees are proud to top engineering talent. work at SMRT, and 86% of them are sustainably engaged, 4% higher than in the previous survey conducted in 2013. This places In tandem, we have also invested heavily in our training SMRT at 7% above the national norm, and on par with global capability in order to meet SMRT’s growing manpower needs. best-in-class standards. Our dedicated training arm, SMRT Institute, has broadened its curriculum to encompass both functional and soft skills training, As part of efforts to enhance communication within the and partnered with institutes of higher learning to strengthen Company, we introduced an Employee Engagement and capabilities. In February 2016, we signed a Memorandum of Internal Communications Framework, with closed-loop feedback Understanding with the University of Birmingham to jointly structures and processes. We also convened various engagement conduct courses on railway engineering and operations. sessions for two-way interaction between Management and employees. The Institute has conducted a review to transform pedagogy and leverage technology to facilitate a more authentic, engaging and Recognising HR Excellence effective learning experience. In collaboration with e2i, SMRT developed and began operations of the Singapore Bus Training We are encouraged by the recognition received for our HR and Evaluation Centre (SG BTEC), Singapore’s first team-based practices. The HR team won awards at the Human Resources training centre for bus drivers and service controllers. The Centre Magazine Awards 2016, The Singapore HR Awards 2015 and HR features state-of-the-art simulators and an integrated service Excellence Awards 2015, including top awards in strategic HR, control centre to enable customised team and scenario-based employee engagement and performance management. On the learning to promote better management of bus service safety individual level, we also received accolades for Best HR Leader, and reliability. These initiatives are in line with SkillsFuture, the Leading CEO and Leading HR Executive. national effort to deepen skills that are vital to Singapore’s key industries. G4-LA9 At SMRT, we invest resources to train our people. In FY2016, our employees clocked 40 hours of training on average.
SMRT Corporation Ltd – Sustainability Report 2016 40 Our Community
Serving Our Community
We believe in making a positive impact on the communities we serve. With island-wide operations, we are committed to conducting our business in an economically, socially and environmentally friendly manner that balances the interests of our stakeholders.
SMRT’s corporate social responsibility (CSR) strategy is fully Since 2008, the Fund has disbursed more than $1.3 million and aligned with our vision of Moving People, Enhancing Lives. has helped close to 8,000 beneficiaries through Community Our CSR objectives support sustainable development at SMRT, Development Councils (CDCs), hospitals and Volunteer Welfare while giving back to society and fostering a fair and inclusive Organisations (VWOs). community. CSR at SMRT is defined by fundamental principles relating to philanthropy, volunteerism, advocacy and operational In FY2016, we achieved a major CSR milestone with our donation practices. These principles are encapsulated in our three pillars of life-size public transportation models – a decommissioned of Enabling Mobility, Empowering through the Arts and taxi, a low-floor bus mock-up and a MRT train mock-up – to Education and Encouraging Environmental Sustainability. the JurongHealth Mobility Park. Situated within the integrated healthcare hub of Ng Teng Fong General Hospital and Jurong Enabling Mobility Community Hospital (JCH), the Mobility Park is purpose-built next to the JCH’s indoor rehabilitative facility. The Mobility SMRT‘s Gift of Mobility (GoM) programme is a key initiative of Park helps patients in their recovery and reintegration back to this CSR pillar. The SMRT GoM Fund was established to provide the community. financially needy individuals with physical disabilities and mobility impairment with point-to-point transfers so that they can receive The Mobility Park is a result of a three-year partnership with their medical treatment, seek employment or go to work until a JurongHealth and was officially opened by the Mayor for South more permanent transport solution is made available to them. West District, Ms Low Yen Ling on 7 January 2016.
Singapore’s first outdoor rehabilitative space with life-size replicas of public transport vehicles. Photo Credit: Jurong Health Services Pte. Ltd.
41 SMRT Corporation Ltd – Sustainability Report 2016 Community
Taxis ferrying beneficiaries to Pulau Ubin as part of the Wheels@Ubin community project.
As part of Singapore’s 50th Independence celebrations in June was made possible by the Care & Share Movement, with SMRT 2015, we supported the Wheels@Ubin community project which as one of the key donors. Children with disabilities can play and brought 100 wheelchair users to Pulau Ubin. SMRT Taxis provided enjoy themselves on a wheelchair-friendly merry-go-round, a 100 taxis and 30 staff volunteers to ferry the participants and wheelchair swing as well as a slide that provides additional tactile accompany the beneficiaries on the visit. stimulation. The playground is specially designed for all children to promote inclusive play and interaction. On 22 August 2015, the first inclusive playground located at Bishan-Ang Mo Kio Park was officially opened by the Minister for Social and Family Development, Mr Tan Chuan-Jin. The launch saw 27 taxi partners ferrying our beneficiaries to the playground which caters to children with disabilities. The inclusive playground
Fong Ruo En is enjoying the inclusive playground. She is accompanied by SMRT volunteer, Joelle Chew (in red) and her father.
SMRT Corporation Ltd – Sustainability Report 2016 42 Our Community continued
A collaboration with Pathlight School to produce 50 pieces of transport-themed artwork for display across the train network.
Empowering Through Arts and Education Education The SMRT Learning Journey is an educational outreach Arts programme designed for students between 12 and 16 years SMRT actively supports the local arts scene. Since 2011, we have old. This programme highlights safety and security features been working with Art Outreach, a non-profit organisation that within our train and bus network, and educates students and the promotes art education in Singapore, to conduct the Art in Transit community at large on how they can play a part in ensuring a safe tour in the Circle Line stations. To date, we have conducted and enjoyable journey within our network. 172 tours and reached out to 3,205 students and members of the public. In FY2016, 170 participants joined us on the SMRT Learning Journey. The journey comprises a customised train ride, an For the first time, we collaborated with Pathlight School for 50 introduction to the fully automated Circle Line’s Operations commissioned works of art featuring transport themes drawn by Control Centre and a bus ride. The Learning Journey emphasises Pathlight students and alumni. Pathlight School, which serves our ongoing efforts to ensure safety, service excellence and students with autism aged 7 to 18 years, is Singapore’s first developments of the multi-year rail reliability programme. autism-focused school offering a unique blend of Singapore’s mainstream academic curriculum with life readiness skills. Encouraging Environmental Sustainability
These works of art are displayed as wall stickers, billboard SMRT strives to achieve environmental sustainability through its posters, and large format light boxes across SMRT’s train green efforts. More information can be found in the section Our network. The collaboration demonstrated SMRT’s support for Environment on page 25. inclusiveness and celebrated the talent of Pathlight students.
SMRT is the Out-of-Home media partner for local art groups and events such as the Singapore Symphony Orchestra and the NUS Arts Festival. In FY2016, we sponsored over $320,000 worth of media space across the SMRT network in support of the arts.
43 SMRT Corporation Ltd – Sustainability Report 2016 Enhancing Lives In November 2015, we introduced our Enhancing Lives logo to represent SMRT’s affirmation in wanting to pay it Community forward to the community. The logo portrays a heart and a pair of supporting hands. The heart is synonymous with a caring community, while the hands embody SMRT’s three CSR pillars. The left hand represents our commitment to encouraging environmental sustainability. The right hand symbolises our efforts in enabling mobility and empowering the community through arts and education. The strategic placement of the SMRT roundel shows that SMRT is at the heart of our community. The colour combination of red, green, orange and black represents the various modes of transport that we operate.
The Enhancing Lives logo encapsulates our CSR commitments.
Giving at SMRT briefings and site visits to our ongoing projects that affect their residents. This is to ensure that the community’s concerns are In the past year, we have provided over $2.0 million worth addressed and disturbance due to our works is minimised. of cash and in-kind sponsorship to help charities and social service organisations raise awareness for their individual causes. In the last year, we reviewed our Friends of SMRT (FOS) We leverage our transport network, including media spaces at programme. The aim of the review was to assess how we can the stations as well as on trains, buses and taxis, to promote the meaningfully reach out to our FOS members who are individuals causes that we support. with a deep interest in transport. Since the relaunch of FOS in November 2015, activities for our members included the opening Additionally, our employees devoted close to 1,925 volunteer of our Woodlands Temporary Bus Interchange. Our membership hours through our CSR programmes. base has been growing and now stands at 200 FOS members.
Engagement with the Community At a strategic level with the transport community, we connect with our transport experts, the Government Parliamentary Committee It is important that we adopt a proactive approach in reaching for Transport and Public Transport Council, to provide updates out to the community. on SMRT, as necessary.
Above and beyond our CSR initiatives, we engage advisors, constituency directors and grassroots leaders through updates, G4-EC1
Cash Sponsorship (%) In-kind Sponsorship (%) Social Services, Mobility Environment Public Education National Events and the Arts Education, the Arts and Others Social Services, Mobility Environment
3% 1% 9% 6%
23%
68% 90%
SMRT Corporation Ltd – Sustainability Report 2016 44 Our Sustainable Procurement
Adopting Responsible and Sustainable Purchasing Practices
We understand the importance for a Company like SMRT to be responsible about our procurement decisions. As a provider of transportation services and other businesses, managing our supply chain is a vital part of our business.
We are focused on improving our procurement practices and engaging our supply chain more strategically to instil sustainable practices throughout our value chain. This will enable us to be competitive in our purchasing decisions in the coming years as the business climate changes. Working with our Suppliers
SMRT enjoys and values long-term relationships based on the security of supply, price credibility and trust with key suppliers. By engaging our key suppliers in a strategic manner, we can promote sustainability throughout the supply chain.
Our biennial Vendors’ Day Event is one such initiative to engage and deepen our cooperation with vendors. Through this event, The procurement team receiving the internationally recognised 32 strategic vendors were kept updated on SMRT’s key thrusts, Corporate Ethics Mark. objectives and challenges in the year ahead. The event saw all 32 vendors committing and affirming their alignment with our ethical and sustainable procurement goals. We also recognised outstanding vendors in the areas of Innovation, Value Creation process and mitigates the risk of fraud. We hope to include and Service Excellence. sustainability as one of the decision-making factors in our evaluation process for major tenders. Our spending on local suppliers for FY2016 was at 91.7%, affirming SMRT’s commitment to supporting the local economy. Risks and Challenges in the Supply Chain
Responsible Procurement Practices We have processes in place to ensure that the suppliers and contractors we work with are credible and responsible companies We established a Code of Ethics on Procurement in 2014 which with the least possible risk to SMRT’s business continuity outlines our commitment to create an environment where all and reputation. businesses, large or small, majority or minority owned, are accorded an equal opportunity to compete for our business. We evaluate high risk suppliers using our Supplier Evaluation Designed as a guide to achieve the highest standard in ethics for Framework and Checklist, which includes environmental and our purchasing professionals, it sets the standards and expected social criteria such as the use of child or forced labour, employee conduct of our employees in their relationships with suppliers welfare and whether suppliers have adequate environmental and contractors. management systems in place.
In addition, all procurement employees are required to pass SMRT has also invested in an e-Procurement solution with a feature the Chartered Institute of Procurement & Supply (CIPS) Ethics that enables us to produce a comprehensive understanding of Course. This led us to achieve the CIPS Corporate Ethics Mark our spending on supplies and services. This allows us to identify which indicates a commitment to responsible sourcing and areas of supply risks and strategise procurement approaches to provides guidelines when dealing with ethical issues. ensure that ethical and sustainable procurement practices are enforced in the supply chain. In 2013, the Tender Evaluation Committee framework was established to cater for a more robust procurement procedure. The framework ensures a rigorous evaluation process through a G4-12 ∕ G4-EC9 ∕ G4-EN32 ∕ G4-LA14 ∕ G4-HR6 ∕ G4-HR10 ∕ G4-SO9 collective decision and improves the integrity of the evaluation
45 SMRT Corporation Ltd – Sustainability Report 2016 GRI Content Index
GENERAL STANDARD DISCLOSURES
Standard Disclosure Title Page Reference STRATEGY AND ANALYSIS G4-1 a. Provide a statement from the most senior President and Group CEO’s Message, page 9 decision‑maker of the organisation (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organisation and the organisation’s strategy for addressing sustainability G4-2 a. Provide a description of key SMRT impacts, risks, President and Group CEO’s Message, page 9 and opportunities Our Corporate Governance and Ethics > Risk Management, page 21 ORGANISATIONAL PROFILE G4-3 a. Report the name of the organisation Page 1 G4-4 a. Report the primary brands, products, and services Page 1 Business Overview, page 3 – 6 G4-5 a. Report the location of the organisation’s headquarters Page 1 G4-6 a. Report the number of countries where the Business Overview, page 3 – 6 organisation operates, and names of countries where either the organisation has significant operations or that are specifically relevant to the sustainability topics covered in the report G4-7 a. Report the nature of ownership and legal form Page 1 G4-8 a. Report the markets served (including geographic Page 1 breakdown, sectors served, and types of customers Business Overview, page 3 – 6 and beneficiaries) G4-9 a. Report the scale of the organisation Business Overview, page 3 – 6 Performance Summary, page 13 G4-10 a. Report the total number of employees by employment Our People, page 38 contract and gender b. Report the total number of permanent employees by employment type and gender c. Report the total workforce by employees and supervised workers and by gender G4-11 a. Report the percentage of total employees covered by Our People > Employee Rights, page 37 collective bargaining agreements G4-12 a. Describe the organisation’s supply chain Our Sustainable Procurement, page 45 G4-13 a. Report any significant changes during the eportingr There have been no significant changes during the period regarding the organisation’s size, structure, reporting period to the organisation’s size, structure, ownership, or its supply chain ownership or supply chain. G4-14 a. Report whether and how the precautionary approach Our Corporate Governance and Ethics > Risk or principle is addressed by the organisation Management, page 21
We take a risk-based approach and apply the necessary precautionary measures, where possible. G4-15 a. List externally developed economic, environmental Our Approach to Sustainability > Sustainability and social charters, principles, or other initiatives to Commitments, page 16 which the organisation subscribes or which it endorses G4-16 a. List memberships of associations (such as industry Our Approach to Sustainability > Sustainability associations) and national or international Commitments, page 16 advocacy organisations Our People > Employee Rights, page 37
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GENERAL STANDARD DISCLOSURES
Standard Disclosure Title Page Reference IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES G4-17 List all entities included or not included in organisation’s Page 1 financial statements G4-18 Describe process for defining Report Content Our Approach to Sustainability > Materiality, page 16 G4-19 List all the material Aspects identified in the process for Our Approach to Sustainability > Materiality, page 17 defining report content G4-20 For each material Aspect, report the Aspect Boundary Our Approach to Sustainability > Materiality, page 18 within the organisation G4-21 For each material Aspect, report the Aspect Boundary Our Approach to Sustainability > Materiality, page 18 outside the organisation G4-22 a. Report the effect of any restatements of information Not applicable as this is our first GRI G4 provided in previous reports, and the reasons for Sustainability Report. such restatements G4-23 a. Report significant changes from previous reporting There have been no change in scope and aspect periods in the Scope and Aspect Boundaries boundaries within this reporting period. STAKEHOLDER ENGAGEMENT G4-24 List of stakeholder groups engaged by the organisation Our Approach to Sustainability > Commitment to Stakeholders > Stakeholder Identification, page 18 G4-25 Basis for identification and selection of stakeholders with Our Approach to Sustainability > Commitment to whom to engage Stakeholders, page 18 G4-26 Approach to stakeholder engagement, including Our Approach to Sustainability > Commitment to frequency of engagement by type and by stakeholder Stakeholders, page 19 group G4-27 Key topics and concerns raised through stakeholder Our Approach to Sustainability > Materiality, page 16 engagement, and how the organisation has responded REPORT PROFILE G4-28 Reporting period for information provided Page 1 G4-29 Date of most recent previous report Page 1 G4-30 Reporting cycle Page 1 G4-31 Contact point for questions regarding the report or Page 1 its contents G4-32 Report on ‘In accordance’ option, GRI Content Index, Page 1 reference to External Assurance G4-33 Policy and current practice with regard to seeking Page 1 external assurance for the report GOVERNANCE G4-34 Governance structure of the organisation Our Corporate Governance and Ethics > Corporate Governance Structure, page 20 ETHICS AND INTEGRITY G4-56 Organisation’s values, principles, standards and norms of Our Corporate Governance and Ethics > Ethics and behaviour such as codes of conduct and codes of ethics Integrity, page 20
47 SMRT Corporation Ltd – Sustainability Report 2016 SPECIFIC STANDARD DISCLOSURES
Standard Disclosure Title Page Reference CATEGORY: ECONOMIC ASPECT: ECONOMIC PERFORMANCE G4-DMA Generic Disclosures on Management Approach Our Strategy > Our 5 Strategic Thrusts, page 11 G4-EC1 Direct economic value generated and distributed Refer to Annual Report > Value Added Statement, page 39 Refer to Annual Report > Notes to the Financial Statements Note 20 Our Community > Giving at SMRT, page 44 G4-EC2 Financial implications and other risks and opportunities We have not formally assessed the financial implications for the organisation’s activities due to climate change of climate change to the organisation. G4-EC3 Coverage of the organisation’s defined benefit Our People > Benefits and Welfare, page 39 plan obligations G4-EC4 Financial assistance received from government Refer to Annual Report > Notes to the Financial Statements Note 21(a), (b) and 22 ASPECT: PROCUREMENT PRACTICES G4-DMA Generic Disclosures on Management Approach Our Sustainable Procurement, page 45 G4-EC9 Proportion of spending on local suppliers at significant Our Sustainable Procurement > Working with our locations of operation Suppliers, page 45 CATEGORY: ENVIRONMENTAL ASPECT: ENERGY G4-DMA Generic Disclosures on Management Approach Our Environment, page 25 G4-EN3 Energy consumption within the organisation Our Environment > Energy Management > Performance, page 28 G4-EN4 Energy consumption outside of the organisation We currently do not track this data. G4-EN6 Reduction of energy consumption Our Environment > Energy Management > Performance, page 28 G4-EN7 Reductions in energy requirements of products Our Environment > Climate Change > Green Transport, and services page 26 ASPECT: WATER G4-DMA Generic Disclosures on Management Approach Our Environment > Water Management, page 29 G4-EN8 Total water withdrawal by source Our Environment > Water Management > Performance, page 29 G4-EN9 Water sources significantly affected by withdrawal Our Environment > Water Management, page 29 of water ASPECT: EMISSIONS G4-DMA Generic Disclosures on Management Approach Our Environment > Climate Change, page 26 Our Environment > Energy Management, page 28 G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) Our Environment > Energy Management > Performance, page 28 G4-EN16 Energy indirect greenhouse gas (GHG) emissions Our Environment > Energy Management > Performance, (Scope 2) page 28 G4-EN19 Reduction of greenhouse gas (GHG) emissions Our Environment > Energy Management > Performance, page 28
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SPECIFIC STANDARD DISCLOSURES
Standard Disclosure Title Page Reference CATEGORY: ENVIRONMENTAL ASPECT: EFFLUENTS AND WASTE G4-DMA Generic Disclosures on Management Approach Our Environment > Waste Management, page 29 G4-EN22 Total water discharge by quality and destination We do not currently track this data. G4-EN23 Total weight of waste by type and disposal method Our Environment > Waste Management > Performance, page 30 G4-EN24 Total number and volume of significant spills Our Environment > Waste Management > Managing Spills, page 30
There have been no significant spills in FY2016. G4-EN25 Weight of transported, imported, exported, or treated We do not transport, import or export waste waste deemed hazardous under the terms of the Basel deemed hazardous. Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally ASPECT: PRODUCTS AND SERVICES G4-DMA Generic Disclosures on Management Approach Our Environment > Sustainable Resource Use, page 31 G4-EN27 Extent of impact mitigation of environmental impacts Our Environment > Energy Management > of products and services Energy Reduction Initiatives, page 28 G4-EN28 Percentage of products sold and their packaging We currently do not track this data. materials that are reclaimed by category ASPECT: COMPLIANCE G4-DMA Generic Disclosures on Management Approach Our Environment > Compliance, page 31 G4-EN29 Monetary value of significant fines and total number Our Environment > Compliance, page 31 of non-monetary sanctions for non-compliance with environmental laws and regulations ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT G4-DMA Generic Disclosures on Management Approach Our Sustainable Procurement, page 45 G4-EN32 Percentage of new suppliers that were screened using Our Sustainable Procurement > Risks and Challenges in environmental criteria the Supply Chain, page 45
We screen new high-risk suppliers using environmental criteria. CATEGORY: SOCIAL SUB-CATEGORY: LABOUR PRACTICES AND DECENT WORK ASPECT: OCCUPATIONAL HEALTH AND SAFETY G4-DMA Generic Disclosures on Management Approach Our Health and Safety, page 22 G4-LA5 Percentage of total workforce represented in formal joint Our Health and Safety > Our Approach to Managing management-worker health and safety committees that Health and Safety > Safety Structure, page 22 help monitor and advise on occupational health and safety programs G4-LA6 Type of injury and rates of injury, occupational diseases, Our Health and Safety > Employee Health and Safety > lost days, and absenteeism, and total number of Performance, page 24 work-related fatalities, by region and by gender G4-LA8 Health and safety topics covered in formal agreements Our Health and Safety > Our Approach to Managing with trade unions Health and Safety > Safety Structure, page 22
49 SMRT Corporation Ltd – Sustainability Report 2016 SPECIFIC STANDARD DISCLOSURES
Standard Disclosure Title Page Reference CATEGORY: SOCIAL SUB-CATEGORY: LABOUR PRACTICES AND DECENT WORK ASPECT: TRAINING AND EDUCATION G4-DMA Generic Disclosures on Management Approach Our Health and Safety > Our Approach to Managing Health and Safety > Health and Safety Training, page 22 Our People > Employee Training and Development, page 39 G4-LA9 Average hours of training per year per employee by Our People > Employee Training and Development, gender, and by employee category page 40 G4-LA10 Programmes for skills management and lifelong learning Our People > Taking Care of an Ageing Workforce, that support the continued employability of employees page 39 and assist them in managing career endings G4-LA11 Percentage of employees receiving regular performance Our People > Diversity, Equal Opportunity and and career development reviews, by gender and by Fair Employment, page 38 employee category ASPECT: DIVERSITY AND EQUAL OPPORTUNITY G4-DMA Generic Disclosures on Management Approach Our People > Diversity, Equal Opportunity and Fair Employment, page 38 G4-LA12 Composition of governance bodies and breakdown of Our People > Diversity, Equal Opportunity and employees per employee category according to gender, Fair Employment, page 38 age group, minority group membership, and other indicators of diversity ASPECT: EQUAL REMUNERATION FOR WOMEN AND MEN G4-DMA Generic Disclosures on Management Approach Our People, Diversity, Equal Opportunity and Fair Employment, page 38 G4-LA13 Ratio of basic salary and remuneration of women Our People > Diversity, Equal Opportunity and to men by employee category, by significant locations Fair Employment, page 38 of operation ASPECT: SUPPLIER ASSESSMENT FOR LABOUR PRACTICES G4-DMA Generic Disclosures on Management Approach Our Sustainable Procurement > Responsible Procurement Practices, page 45 G4-LA14 Percentage of new suppliers that were screened using Our Sustainable Procurement > Risks and Challenges in labour practices criteria the Supply Chain, page 45
We screen new high-risk suppliers for labour practices. Quantitative data is not available for FY2016. G4-LA15 Significant actual and potential negative impacts for We currently do not track this data. labour practices in the supply chain and actions taken ASPECT: LABOUR PRACTICES GRIEVANCE MECHANISMS G4-DMA Generic Disclosures on Management Approach Our People > Employee Rights, page 37 G4-LA16 Number of grievances about labour practices filed, Our People > Diversity, Equal Opportunity and addressed, and resolved through formal grievance Fair Employment, page 38 mechanisms SUB-CATEGORY: HUMAN RIGHTS ASPECT: INVESTMENT G4-DMA Generic Disclosures on Management Approach Our Sustainable Procurement > Responsible Procurement Practices, page 45 Our People > Diversity, Equal Opportunity and Fair Employment, page 38 G4-HR1 Total number and percentage of significant investment At present, we do not quantitatively track the screening agreements and contracts that include human rights of agreements and investments with human rights clauses or that underwent human rights screening criteria. We do screen procurement decisions for high-risk suppliers based on location and risk of human rights issues.
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SPECIFIC STANDARD DISCLOSURES
Standard Disclosure Title Page Reference CATEGORY: SOCIAL SUB-CATEGORY: HUMAN RIGHTS ASPECT: INVESTMENT G4-HR2 Total hours of employee training on human rights We currently do not track this data. policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained ASPECT: NON-DISCRIMINATION G4-DMA Generic Disclosures on Management Approach Our People > Diversity, Equal Opportunity and Fair Employment, page 38 G4-HR3 Total number of incidents of discrimination and Our People > Diversity, Equal Opportunity and corrective actions taken Fair Employment, page 38 ASPECT: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING G4-DMA Generic Disclosures on Management Approach Our People > Employee Rights, page 37 G4-HR4 Operations and suppliers identified in which the right to Our People > Employee Rights, page 37 exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights ASPECT: FORCED OR COMPULSORY LABOUR G4-DMA Generic Disclosures on Management Approach Our Sustainable Procurement > Risks and Challenges in the Supply Chain, page 45 G4-HR6 Operations and suppliers identified as having significant Our Sustainable Procurement > Risks and Challenges in risk for incidents of forced or compulsory labour, and the Supply Chain, page 45 measures to contribute to the elimination of all forms of forced or compulsory labour We evaluate all high-risk suppliers, especially from countries where such issues may exist. ASPECT: ASSESSMENT G4-DMA Generic Disclosures on Management Approach Our People > Diversity, Equal Opportunity and Fair Employment, page 38 G4-HR9 Total number and percentage of operations that At present, we do not track data quantitatively as our have been subject to human rights reviews or operations are in Singapore where human rights issues impact assessments are tightly controlled by the Government. ASPECT: SUPPLIER HUMAN RIGHTS ASSESSMENT G4-DMA Generic Disclosures on Management Approach Our Sustainable Procurement, page 45 G4-HR10 Percentage of new suppliers that were screened using Our Sustainable Procurement > Risks and Challenges in human rights criteria the Supply Chain, page 45
We currently only evaluate high-risk suppliers. G4-HR11 Significant actual and potential negative human rights We currently do not track this data. impacts in the supply chain and actions taken ASPECT: HUMAN RIGHTS GRIEVANCE MECHANISMS G4-DMA Generic Disclosures on Management Approach Our People > Employee Rights, page 37 G4-HR12 Number of grievances about human rights impacts Our operations are in Singapore where human rights filed, addressed, and resolved through formal issues, such as child labour or forced labour, are tightly grievance mechanisms controlled by the Government. We do not track grievances across the supply chain.
51 SMRT Corporation Ltd – Sustainability Report 2016 SPECIFIC STANDARD DISCLOSURES
Standard Disclosure Title Page Reference CATEGORY: SOCIAL SUB-CATEGORY: SOCIETY ASPECT: LOCAL COMMUNITIES G4-DMA Generic Disclosures on Management Approach Our Community, page 41 G4-SO1 Percentage of operations with implemented local The majority of our operations are in Singapore, hence community engagement, impact assessments, and our community engagement outreach and initiatives are development programs focused locally. G4-SO2 Operations with significant actual and potential negative Our operations have a significant positive impact on the impacts on local communities local community through the public transport service that we provide. These impacts, and the potential negative impacts, are covered throughout the report. ASPECT: ANTI-CORRUPTION G4-DMA Generic Disclosures on Management Approach Our Corporate Governance and Ethics > Conducting our Business Ethically, page 21 G4-SO3 Total number and percentage of operations assessed Our Corporate Governance and Ethics > Conducting our for risks related to corruption and the significant Business Ethically > Whistleblowing Channels and risks identified Responding to Fraud, page 21 G4-SO4 Communication and training on anti-corruption policies Our Corporate Governance and Ethics > Conducting our and procedures Business Ethically, page 21 G4-SO5 Confirmed incidents of corruption and actions taken Our Corporate Governance and Ethics > Conducting our Business Ethically, page 21 ASPECT: ANTI-COMPETITIVE BEHAVIOUR G4-DMA Generic Disclosures on Management Approach Our Corporate Governance and Ethics > Conducting our Business Ethically > Fair Marketing Communications, page 21 G4-SO7 Total number of legal actions for anti-competitive Our Corporate Governance and Ethics > Conducting our behaviour, anti-trust, and monopoly practices and their Business Ethically > Fair Marketing Communications, outcomes page 21 ASPECT: SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY G4-DMA Generic Disclosures on Management Approach Our Sustainable Procurement > Our Responsible Procurement Practices, page 45 G4-SO9 Percentage of new suppliers that were screened using Our Sustainable Procurement > Risks and Challenges in criteria for impacts on society the Supply Chain, page 45
We screen new high-risk suppliers using a framework that takes into account impacts on society (human rights, labour and environmental criteria). G4-SO10 Significant actual and potential negative impacts on There has been no significant impact on society in the society in the supply chain and actions taken supply chain during the reporting period. ASPECT: GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY G4-DMA Generic Disclosures on Management Approach Our Community > Engagement with the Community, page 44 G4-SO11 Number of grievances about impacts on society Our Environment > Noise Management, page 30 filed, addressed, and resolved through formal grievance mechanisms We have a formal grievance process where we receive and assess complaints from the community relating to factors such as noise.
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SPECIFIC STANDARD DISCLOSURES
Standard Disclosure Title Page Reference CATEGORY: SOCIAL SUB-CATEGORY: PRODUCT RESPONSIBILITY ASPECT: CUSTOMER HEALTH AND SAFETY G4-DMA Generic Disclosures on Management Approach Our Health and Safety > Customer Health and Safety, page 24 G4-PR1 Percentage of significant product and service Our Health and Safety > Customer Health and Safety, categories for which health and safety impacts page 24 are assessed for improvement G4-PR2 Total number of incidents of non-compliance with Our Health and Safety > Our Approach to Managing regulations and voluntary codes concerning the Health and Safety > Compliance, page 23 health and safety of products and services during their life cycle, by type of outcomes ASPECT: PRODUCT AND SERVICE LABELLING G4-DMA Generic Disclosures on Management Approach Our Customers > Providing Outstanding Customer Service, page 32 G4-PR5 Results of surveys measuring customer satisfaction Our Customers > Our Performance > Customer Satisfaction, page 35 SUB-CATEGORY: PRODUCT RESPONSIBILITY ASPECT: MARKETING COMMUNICATIONS G4-DMA Generic Disclosures on Management Approach Our Corporate Governance and Ethics > Conducting our Business Ethically > Fair Marketing Communications, page 21 G4-PR7 Total number of incidents of non-compliance with Our Corporate Governance and Ethics > Conducting our regulations and voluntary codes concerning marketing Business Ethically > Fair Marketing Communications, communications, including advertising, promotion, and page 21 sponsorship, by type of outcomes ASPECT: CUSTOMER PRIVACY G4-DMA Generic Disclosures on Management Approach Our Customers > Customer Data Privacy, page 35 G4-PR8 Total number of substantiated complaints Our Customers > Customer Data Privacy, page 35 regarding breaches of customer privacy and losses of customer data ASPECT: COMPLIANCE G4-DMA Generic Disclosures on Management Approach Our Customers, Providing Outstanding Customer Service, page 32 G4-PR9 Monetary value of significant fines for non-compliance Our Customers > Our Performance > Meeting with laws and regulations concerning the provision and Operational Standards, page 36 use of products and services
53 SMRT Corporation Ltd – Sustainability Report 2016 SMRT Corporation Ltd 251 North Bridge Road Singapore 179102 Telephone: (65) 6331 1000 www.smrt.com.sg
Company Registration No.: 200001855H